Ongoing turbulence
and price explosions are characterizing the fruit and vegetable trade, firmly gripping Munich wholesale market traders as well.
"We have to adjust our calculations and our prices accordingly. For the most part, this is still being accepted on the part of the buyer. The question is, however, when the feedback will take place and when the pain threshold will be reached by the customer and the consumer," says Daniel Schury, Managing Director of the Franz Schmitt company.
Right: Daniel Schury, Managing Director of Franz Schmitt & Co.
Schury outlines the current price explosions with some practical examples. "Italian cauliflower in boxes of 6 is currently at 20 euros in the purchase, while package prices around 10-12 euros were normally already decent." According to the wholesaler, things are getting critical in the greenhouse vegetable category. "Due to increased energy prices, many Dutch and Belgian greenhouse farms are relying on cucumbers instead of tomatoes. Although shortages are not currently evident, this may well impact the supply situation at some point."
Shortage of goods in Spain
In this context, Schury also points to the limited harvest volumes in Almería, Spain's vegetable garden, due to weather conditions. "Spanish vine tomatoes are already priced at 12-15 euros/each 5 kg when purchased. Southern Europe is also struggling with the same challenges, i.e. rising energy prices, as vegetable production here. All vegetables are therefore being traded at very high prices at the moment."
Although there has been little movement in cucumbers in recent weeks, prices will soon rise here too, the wholesaler predicts. "In week 5 and 6, the lowest volumes of the entire Spanish season are expected. This is already partly noticeable in the current price increases. Dutch as well as Belgian batches are slightly more expensive than Spanish product, but cheaper than if they were traded to supply the retail programs. The supply of Spanish peppers and eggplants is also currently declining. So there will be one or two supply gaps there."
According to Schury, there are hardly any alternatives available: "We do occasionally offer Moroccan goods, but the quality is often a bit less due to the longer transport routes."
Stand of the company in the central wholesale market hall Munich
Supply of private households
The Franz Schmitt company is primarily dedicated to supplying customers from regional specialist retailers, wholesalers, restaurants, catering delivery services and food retail outlets. At the beginning of the Corona crisis, Die Veggies was created, an additional business line for supplying private customers.
Schury: "The business line has established itself very well. But we don't have the time to really push it. Nevertheless, it is an interesting revenue pillar and we have the advantage of being directly at the source."
Images: FRANZ SCHMITT & CO
For more information:
Daniel Schury
FRANZ SCHMITT GMBH & CO . KG
Großmarkt München
T +49 89 7 67 36 33
F +49 89 7 21 10 50
info@franz-schmitt.de
www.franz-schmitt.de