The increased garlic production in recent seasons and the growing competition from Chinese garlic have led to difficult times for the Spanish sector.
According to Adolfo Mesas, production manager of La Veguilla, in Las Pedroñeras, "this campaign followed on the steps of the previous one, which already registered poor results. We could say that it is even worse, with prices that do not even cover production costs."
"If we go back to the 2010 campaign, we will recall that it was a good year in terms of prices, which attracted new growers to plant garlic coinciding with the rise in unemployment in Spain," he explains. "To this must we must add the increase in production volumes in countries such as Italy and France, where for years the crop had been significantly abandoned, again as a result of the higher prices. 2010 was a very good year, but now the situation has reversed."
"Ever since, consumption started to fall while the acreage increased due to the effects of the economic crisis, and now we have an imbalance between supply and demand," continues Adolfo.
Furthermore, last season's surplus stock "was not representative or had a significant impact." He also adds that "for marketers like us, whose clients are mainly supermarket chains, it would be much worse to run out of produce and cut off supply."
On a positive note, Adolfo highlights that this campaign "the garlic presents an exceptional quality," as the crop has positively benefited from the dry weather, which hinders the presence of diseases. "The quality is even better than last year's," he assures.
La Veguilla produces and sells mainly Purple Garlic, in addition to Spring and White garlic; the company grows 80% of the garlic it sells.
La Veguilla exports about 70% of its garlic, mainly to EU countries, but also to Israel, Algeria, Morocco, as well as overseas destinations such as Brazil, Haiti and the United States in seasons with abundant supply. "Algeria is a great customer, as their garlic importers truly value Purple garlic, just like Morocco," affirms Adolfo Mesas.
Regarding the impact of the Russian ban on Spanish garlic exports, Adolfo believes that although Spain does not ship significant volumes directly to Russia, which in turn imports mainly from China, "we have noticed a slight drop in orders from re-exporting countries like the Netherlands," he explains. "Some might also take advantage of the Russian veto to lower purchase prices," he adds.
Contact information:
Adolfo Mesas (Production Manager)
LA VEGUILLA
T: +34 967160351
M: +34 607823494
adolfo.mesas@laveguilla.com
Ángel García Rodríguez (Marketing Manager)
M+34 607080641
veguillaangel@telefonica.net
www.veguilla.com
Adolfo Mesas (Production Manager)LA VEGUILLA
T: +34 967160351
M: +34 607823494
adolfo.mesas@laveguilla.com
Ángel García Rodríguez (Marketing Manager)
M+34 607080641
veguillaangel@telefonica.net
www.veguilla.com