Prices have fallen by 25% since the entry into force of the Russian veto
Spain: Kaki production will be 20% lower than expected
Many had thought that the entry into production of young plantations would compensate for the fall in yields, but it has not been the case, because the productive capacity of the older trees, which are the most affected by the heat waves, is 4.5 times greater," explains Vicent Masià, president of the association.
However, it should be noted that the calibres "are bigger this season; much more marketable than in the previous campaign, when there was an abundance of small calibres," he pointed out.
Since the discovery of the technological method that eliminates the astringency of kakis, both production and demand have not stopped growing practically at the same pace. According to Vicent Masià, the expansion of the acreage has slowed down this year due to the adjustment between supply and demand. "There are nurseries which have been left with many unsold kaki trees," he affirms. "This does not mean that the kaki acreage will stop growing, but it won't do so at the pace of the last 5 years," he added.
At the moment, prices are gradually falling as volumes increase, with the production expected to peak from late October and throughout November.
Average price has dropped by 25% since entry into force of Russian Veto
The Valencian Association of Farmers (AVA-ASAJA) reported that the fruit's prices at origin have fallen by an average of 25% over the last three seasons, dropping in some cases below the production costs, and attributes this to the enforcement of the Russian veto and the lack of new Asian and American markets.
The profitability of kakis has been sharply affected by the Russian ban which came into force in August 2014. Russia was especially important for the sector because it used to acquire second class calibres and thus contributed to prevent saturation in the European markets.
"We all knew that Moscow's decision could have a very negative impact on the crop," pointed out the president of AVA-ASAJA, Cristóbal Aguado, and for that reason, the Spanish government and the European Union promised us that, in compensation, they would look for alternative markets. But neither Madrid nor Brussels have kept their word in all this time. We feel doubly cheated and mistreated, since in addition to not finding consumers outside of Europe, the authorities have not granted sufficient financial compensations to those affected."
The agrarian leader stresses the great potential of kakis thanks to their taste, nutritional properties and easy consumption. "If the international markets that are now closed were open, we would have to triple our kaki production. We want effective politicians who are able to meet the needs of their people in a timely manner, and not what we have seen with the Russian veto. First, they create a problem that has nothing to do with the agricultural sector, and then the solutions never arrive."
The reduction of prices at origin also coincides in time with an overall increase of the production costs. On the one hand, producers have to deal with the emergence of new pests, such as whiteflies and physiopathies, which arise as the trees become settled in Valencia's fields. On the other hand, the need to extend the campaign by resorting to treatments for the advancement or delay of fruit ripening, as well as the stricter standards set by large distribution chains, contribute to increasing the costs at a time when prices are in a downward trend.