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Luis Ramos, MG Fruit:

"Spanish fruiting vegetable prices still modest due to overlap with Dutch season"

The Spanish fruiting vegetable season is now well underway. "In tomato country, you can see that the warm weather of the past few weeks is having a favourable effect on production. The pepper supply, on the other hand, seems to have slowed down somewhat, partly due to the presence of thrips parvispinus. This is already having a major impact on the market, and I expect this to become much more apparent in the coming weeks when shortages arise," says Luis Ramos of MG Fruit in Ridderkerk.

"Even aubergines and courgettes are already arriving from Spain in decent volumes. However, reports suggest that Spanish courgette growers are choosing to stop earlier and switch to other crops. Spanish aubergine production is expected to remain fairly stable. In general, Spanish fruiting vegetable prices are nothing to get excited about, but that's typical during the overlap with the Dutch season. That influence will be felt for another week or two," Luis expects. The exception to the low prices is Spanish peppers. "That's one of the few product groups still fetching high prices," he says.

"Furthermore, mini cucumbers have become a much larger item in recent years; they've really outgrown their niche status. The same applies to cherry plum tomatoes, which have become much more of a mainstream commodity." The growth of organic fruiting vegetable production in Spain has slowed considerably after years of expansion, Luis notes. "I think that's a good thing because it ensures a better balance between supply and demand."

According to Luis, a broader trend is that mergers and collaborations are increasingly shaping the Spanish fruit and vegetable sector. "Companies are joining forces to save costs and strengthen their market position. Similarly, in Spain, more and more investment companies are creating larger groups with a broader product portfolio." High-tech glass greenhouses remain an option for only a few growers in the 'sea of plastic' of Almeria, Luis adds. "In hot weather, you also have to cool them down, and Spaniards are not keen to spend their money on expensive greenhouses."

Tropical crops
"Another noticeable trend is the cultivation of increasingly exotic crops, such as pitahaya and passion fruit, in growing regions in southern Spain. With higher temperatures, growing these crops is now becoming viable." Although MG Fruit has no ambition to become a major player in these crops, Luis sees opportunities for market players. "If you otherwise have to import these products from South America or Asia, then anything you can source closer to home is interesting. Transport from Spain remains manageable, although the shortage of Spanish transport staff is becoming quite noticeable."

"Even for Spanish outdoor products like iceberg lettuce and broccoli, Dutch prices still have a strong influence on Spanish pricing. We saw that last year when there was significantly more product available than demand, but the overall market situation entirely depends on weather conditions in Spain. If it rains for two days in major production areas or if it's extremely cold or hot, we immediately see the effects in European availability."

The Spanish citrus season has also started. "Growers in Spain are closely watching the extreme heat in Morocco, which could have a major impact on overall production and pricing in Spain. In addition, we're seeing lower lemon production this year. Prices may be higher, but demand isn't particularly strong."

For more information:
Luis Ramos
MG Fruit
+31 (0) 180 745 477
[email protected]
www.mgfr uit.nl

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