Spain: Sharp price increase for small calibre kiwis

The Spanish kiwi campaign moves forward at a good pace, with good sales and slightly higher prices than in previous campaigns, even if still considered insufficient.

Overall quality standards are good, as temperatures during the summer were not excessively high and the occasional rains helped in achieving satisfactory sugar levels. Nevertheless, "due to the heavy rains we had a month before the harvest, during the growing stage, where there were fruits which quickly lost their flavour intensity while eating them."

There is also an abundance of large calibres, between 20 and 23, and there is a great lack of calibres 36, 39 and 42. "This is leading to a sharp price increase for the smaller calibres, especially in Europe, where they are appreciated because they are usually sold loose," explains Carlos Vila.

The most common variety in Spain at the moment is the Hayward, whose campaign begins in December and ends in May. Other varieties include the Earligreen, which starts being harvested in September, and the Summerkiwi in October and November.

Yellow flesh kiwis could start being harvested again by late 2014
"The yellow variety Jintao, which we had started planting four years ago and had to be destroyed due to a PSA infection, is being tested again with the same grafted variety and a new one, and if everything goes according to plan, especially in terms of PSA resistance, we will have new plantations by late 2014," says Carlos Vila.

"We are also researching another yellow variety that could be very interesting. So far, no satisfactory results have been obtained, but we are on the right path."

For this reason, the yellow flesh varieties being marketed by Kiwi Atlántico are still imported from other countries. "We sell Italian kiwis from December to April and Chilean kiwis from June to September."

According to Carlos Vila, the market only accepts yellow varieties if they have the right qualities and a sweeter flavour than their green counterparts. "Taking into consideration that their current prices are excessively high, consumption levels drop very quickly if their organoleptic qualities are not up to a great standard and regaining consumer trust is very hard."

The lower consumption levels naturally lead to the campaign being extended, although the product is still perceived as "exclusive" and consumers only purchase it very occasionally.

Other European kiwi producers increasingly less seen as competitors
"For us, other European kiwi producers had always been seen as competitors, but this is changing, especially in the gourmet segment in which customers are willing to pay more for a better (and nationally-produced) product," states Carlos Vila.

Consequently, the natural destination for Spanish kiwis is the domestic market. In any case, Kiwi Atlántico's program for the next three years involves entering Asia and the Far East and exporting again to America and Central Europe, as production volumes will start recovering from the effects of the PSA infection three years ago.

The introduction of the new Kiwi Atlántico Etiqueta Negra (Black label) brand is being satisfactory, according to Carlos Vila, although larger volumes are still needed. "This year, we have successfully started marketing kiwis under the Kiwi Atlantico Etiqueta Negra brand, but only in stores specialised in gourmet products, as production volumes are still small. We expect to be able to start supplying it to larger distributors and wholesalers next year."

For more information:
José Carlos Vila
Kiwi Atlantico, S.A.
T: +34 986715286
M: +34 616 944 607
comunicacion@kiwiatlantico.com
www.kiwiatlantico.com