The final results accumulated for the sale and production of lettuce in the last season, are worse than the year before. As shown in the figures recorded by the Ministry of Agriculture, Fisheries and Environment. There has been a 32% decline
in the total output value of Almeria's production, despite the fact that there has been at the same time an increase in the offer.
According to Eduardo Cordova, director of sales and marketing for the Primaflor Group, this factor "has been one of the Key elements for this campaign." At certain times, "there was an oversupply due to the market entry of new productions."
Jose Navarro, manager of the Navarro company, said: "the worst rates were recorded through the months of October to January, and later in April." For this trading company, the way the campaign has been developing will define how the next one will be, Navarro says, "in planning for the next lettuce season we contemplated the possibility of reducing our production by 10%."
However, the determining factor, says Eduardo Cordoba, has been the decline in demand. This year, lettuce traders in the province have been suffering due to this the trend in consumption. "Average prices have seen a fall in both the wholesale and retail market because of this," says Cordova. The closure of programs with customers has encouraged output of the products, however, the effect of low consumption, has caused the value to be lower, "generating a lower turnover in the business," says Eduardo Cordoba. One product that has felt this decline in consumption has been the iceberg lettuce. To address the situation and prevent further damage, companies such as Primaflor have tried to diversify their product portfolio, investing in those in which there has been less of a fall in consumption. Thus, in the Primaflor Group said Cordova, "every product that improves business has been enhanced such as the multileaf salad."
Fresh cut and packaged vegetables
Lettuce counts with, according to the director of sales and marketing of the Primaflor Group, a group of specific consumers. This group differs from the group that chooses the product from the fresh cut range, in which Primaflor bases 35% of its total business volume. While consumption has fallen, salad demand continues to have an increasing rate. Cordoba said, "this market continues to grow, but not above double digits, while in Primaflor we keep our percentage growth in double figures." The increase of the overall demand for fresh cut products is around
4%, according to data provided by Primaflor.
Market Trends
Wholesale markets are experiencing pain from the power exercised by large retailers, which are increasingly concentrated and that "continue to increase its size," says Cordova." This is making the offer subject to the requirements that this trend makes, but also marketers seek ways to adapt to this new landscape. In the national market, "retail is becoming increasingly well known," he says. Thus, companies are mostly linked to a business that is generated through it, and therefore it must be adaptable, on the one hand, everything related to requirements in quality, but also that can provide an important volume to meet demand. As for the product, according Córdobael the market demands, says the commercial director of Primaflor Group "new flavors and textures, with a clear trend towards baby leaf and multileaf products."
Source: Ideal