For those with good yields, 2018 will be remembered as a positive year when it comes to profit. However, average yields weren't satisfactory. Summer fruit must taste good and have good grades to sell well. In addition, there are more and more consumers that opt for specialized stores to find high quality fruit.
This is what Francesco Donati, president of the fresh fruit national federation for Confagricoltura, discussed with FreshPlaza. "Special offers in supermarkets don't increase sales, they actually butcher the sector. Consumers lose their perception of the value of fruit and there is no benefit for producers. Offers at €0.49/kg or €0.99/kg make people think they are saving money. No one goes to a store to ask for a discount on an €800 smartphone. Actually, the more expensive, the more it is considered a status symbol. Yet people are willing to buy peaches at €0.99/kg to save a few cents instead of purchasing at a fairer price that repays all parts of the chain."
Many retailers have reported a drop in fresh produce sales over the past few months, meaning special offers are not working. The common perception is that "if it's cheap, it must be worth very little", however, the case is often that, if something is cheap, it means producers are not making a profit.
"If we go on like this, we risk having no domestic produce left. The only consolation is that sales seem to be increasing in small stores. People buy fewer fruits, only those they are sure they can eat, but they buy them willingly and go back to repurchase them as they know the fruit is tasty."
Then Donati addressed the topic of aggregation. "Large buyers must deal with few sellers that manage all of the produce. Aggregation must be total or almost total, otherwise there will always be someone that can ruin the market. The subject at the top must be able to manage all of the product, therefore drastically reducing the alternatives for buyers."