"We started processing Sicilian Victoria and Black Magic grapes on May 7th 2023, which have been performing well. Of course reference prices change as the season progresses: they initially reached €4/kg, while now exporters working with us can reach €2.50/kg from their warehouse, packaging and labor costs excluded," report Claudio and Leon Romano from StarTrade.
Claudio and Leon Romano from StarTrade
Romano stresses, however, that the situation will calm down further due to both the higher volumes from Sicily and the large quantities of Egyptian grapes on the European markets. "Because of the presence of produce from Egypt, prices have been dropping considerably. And those those producers who are waiting to sell their produce in the hope that the price might pick up are just crazy. Quotations will only drop further or maybe stabilize at the current value."
As for the pressure caused by Egyptian exporters, Leon Romano reports that "we have been receiving pre-payment proposals but, since Italian grapes is available, we prefer working with the latter. The same cannot be said for Dutch importers, who already have strong relations with Egyptian exporters. And, just like every year, when a Dutch receives an average of 20 pallets of Egyptian grapes at a time, it is clear how the European markets are filled with produce that needs to be sold quickly. Prices therefore tend to drop and Italian grapes must conform despite their higher freshness and health."
"The Netherlands have a very specific function: they import goods which are then redistributed on the European markets: they do so with Egyptian produce, Italian produce as well as with produce from other origins. German chains instead have been importing directly from Egypt for some time. Consolidated volumes and dedicated packaging are an element of strength in this case."
On markets such as Poland, the Czech Republic or Croatia, rumors talk about distribution chains that are featuring Italian grapes, meaning there are operators who are starting to enter the scenario. Prices however are still too high. Over the past few years, well-known Polish groups received Italian produce only when prices were at least 30% lower than the current one. This says a lot about the situation we have now. Grapes from overseas, which were available up until little time ago, are no longer available and those who needed continuity looked for produce where they can find it."
Table grapes are not lacking at the moment, "although many Sicilian producers are reporting 30-40% less volumes due to the bad weather in February. It is also true that it has been raining quite often in Sicily lately, making it more difficult to manage and handle the produce."
Other products
StarTrade is also working with peaches and nectarines from northern Puglia. "Quality and grades are good if compared with the fruit coming from Spain and prices are rather high despite the recent drop. Ten days ago we were talking about €2.80 while, recently, large grades registered €2.50 and medium ones were sold at €2.00."
"We are also still processing vegetables, including parsley, dill and kohlrabi. There are in fact delays in central Europe due to the bad weather, so much so that we are still selling smooth parsley which Germany would already be producing during a normal year."
Finally, there are 40+ Spunta new potatoes from the Polignano area. "Prices are higher than average and they are already being purchased by Austria, though requests are coming in from France as well. However, with prices of €0.80-0.85/kg, few can actually purchase them."
Photos provided by Claudio Romano
For further information:
Claudio Romano, +39 335 402 262
Leon Romano, +39 348 443 5447
StarTrade Srl
Startradesrl1@gmail.com (consultancy)
Petraleon@libero.it (exports)