Global prune orchards face sustainability threat

After several years of unsustainable pricing brought on by large cultivations in South America, prune growers in France, California, Chile, and Argentina question their willingness to continue producing prunes unless there is a significant increase in market pricing for 2013.

Already, the International Prune Association (IPA) estimates that 10% of global prune acreage (approximately 12,000 hectares) has been either removed or abandoned in the last couple years, with many of the orchards being converted to either walnut or almond production.

All major producing countries must deal with the current economic sustainability issue with prunes. At the IPA conference held May 2012 in Davis, California (USA), representatives from each of the major prune producing countries expressed grower dissatisfaction with current market prices and the likelihood of growers pulling prune acreage and shifting to nut crops if pricing does not improve in 2013.

Thus, the prune industry now faces the challenge of securing their future. The industry will either improve prices for prunes or watch growing demand for higher price nuts in Asia, Eastern Europe and Russia, transform prune orchards into acreage for walnuts, almonds or pistachios. All of which promises bigger profits for growers.
California packers seem to have got the message. The major handler there has already increased domestic retail prices about 10%, and announced more modest increases in European markets such as Germany, Italy, Denmark, Norway, and Finland. Representatives of independent growers say this is not enough, and have announced their need for a 13% price increase to become viable. Their cause will be aided by recent government surveys and statistics showing inventories 13% below last year and the 2012 crop, now being harvested, which appears to be 5% smaller than forecast.

In the meantime, consumers hope not to be left without their prunes. The digestive benefits of prunes are legendary and a staple for many in Europe. Further, emerging research in bone health, heart health and ageing, suggests that prunes could be even more important to other areas of our health.

For more information:
Maria G. Kraus
tel. +49 228 943787-0
fax +49 228 943787-7
[email protected]