After a bad 2013 for the strawberry sector, and contrary to what was expected, producers this season are again at the mercy of the weather and in addition, having to deal with a stagnant market.
Problems started already with the planting, as temperatures were too high and some plants dried out, forcing growers to transplant them, which entailed extra costs, lower production volumes and delays in the start of the campaign.
"With the entire berry family, the weather has a great impact on both production volumes and sales," explains José Beltrán, manager of the company Hispalco.
"The plantations suffered low temperatures, strong winds and rains during the entire month of February, while sales volumes at the destination markets have also been affected by low temperatures and the arrival of low quality batches produced in far from ideal conditions."
Given the circumstances, production volumes in January were low, which "at least resulted in good prices," points out José Beltrán. "Nevertheless, sales volumes during the following weeks have dropped to totally unexpected levels. During February, the few volumes shipped have been sold slowly and at low prices due to the lack of demand."
"Fewer volumes and better quality to gain competitiveness"
According to José Beltrán, what the strawberry sector needs in order to gain competitiveness is to produce smaller volumes and put more emphasis on quality. "We should opt for quality over quantity, preventing the introduction of tonnes of strawberries into the market which will have to be sold for prices below production costs."
"Spain is close to countries that are becoming fiercer competitors, like Morocco, Egypt or Israel, which have lower production costs and can afford to sell their fruit cheaper. However, these countries' strawberries are generally of lower quality and presented in a less attractive manner. The only way for us to compete is to produce smaller volumes of better quality and more resistant varieties."
José Beltrán says that this entails higher production costs, but states that "our past experience has taught us that most consumers are willing to pay more for a better quality fruit."
"With this strategy, we also prevent losing market share in countries like Belgium, the Netherlands, France or Germany, which consume Spanish strawberries until their own production enters the market between the middle and the end of our campaign."
Even though predicting how the campaign will end "is not easy", as it largely depends on the weather, "we hope to close a good season, in spite of the not so remarkable start," concludes the manager of Hispalco.
For more information:
Ana Beltrán
HISPALCO, S.A.
C/ Barranco Pascual, 45. Pol. Ind. Campo Aníbal.
46530 Puzol, Valencia. Spain
M: +34 606686319
T: +34 963404422
abeltran@hispalco.com
www.hispalco.com