Supplies of peaches and nectarines in Canada are slimmer. “There’s a lot less fruit out there,” says Guy Milette with Courchesne Larose.
At this point in the season, supplies of peaches and nectarines should have been coming in more heavily from states such as Georgia and the Carolinas. However, a freeze in March affected a number of stone fruit-producing states in the East.
Those regular East Coast supplies would generally allow a pressure-free start to California’s season which is where Courchesne Larose is currently bringing in fruit from. “California had a late start as well and the weather has been colder than they would have liked so it’s been a challenge to catch up,” says Jean-Francois (JF) Gamelin. “The sizing has also started with smaller fruit. It is getting bigger but not at the speed at which we are accustomed or the speed the market needs.”
Spanish imports
Also shipping fruit right now into Canada is Spain. “Last year, Spain didn’t have a whole lot of volume crossing here but this year we are expecting more and more. The freight is also lower so Spain will help there be more competitive pricing on peaches and nectarines,” says Gamelin.
The growing amount of Spanish peaches and nectarines available in the Canadian market is a notable change. “The Spanish option has become more acceptable and in the last four to five years, retailers will easily go with Spain,” says Milette. “Transportation from Spain is half the price of transportation from California and we can do Spain to Montreal in 10 days. However it is one of the origins that sells the most in Europe so if demand is greater there than in North America, it won’t work.”
As for demand, the lack of supply is leaving demand looking particularly strong and prices are higher than last year at this time. “There are thoughts that pricing will remain somewhat stable because the East Coast doesn’t have the supply they would normally have,” says Gamelin.
California pricing
Also factoring into pricing is the predominance of California’s fruit. “The average price of California fruit is usually much higher than the East Coast. However, if you go to California, you have $8,000-$10,000 freight compared to $3,500 freight from Georgia--that’s a 25 percent higher price out of California,” Milette says, noting that normally greater volumes of East Coast fruit help with initiatives such as promotions and keeping pricing lower.
Looking ahead, the local crop is also coming on in Ontario, though it’s not enough to supply the market so there will still be a mix of Ontario and California fruit at that time. “We’re expecting supply to pick up around the third week of July from Ontario. They’ve had nice weather and they think volume-wise that they will have a very good crop and the sizing will be there. They’re saying it will be a strong season,” says Gamelin. “It will be an interesting market to follow for the next three to four weeks.”
Photo: Dreamstime
For more information:
Guy Milette
Courchesne Larose
Tel: (+1) 514-525-6381
Guy.milette@clarose.com
www.courchesnelarose.com
Jean-Francois Gamelin
Courchesne Larose
Tel: +1 (514) 525-6381 #3207
jean-francois.gamelin@clarose.com
www.courchesnelarose.com