As geopolitical tensions in the Middle East continue evolving, Salix Fruits is closely tracking potential impacts on global fresh produce trade. While demand for fresh fruit remains stable, the company identifies logistics disruption and rising transportation costs as the primary risks for the industry.
"We are not seeing a direct impact on fresh fruit demand today, but we understand that the main risks lie in logistics and the costs associated with international transport, including fuel price increases. The region concentrates a significant share of global crude trade, and any disruption can ripple through the entire supply chain", said Juan González Pita, COO of Salix Fruits.
© Salix Fruits
When geopolitical crises emerge, the fresh produce industry tends to feel the pressure first in its operations, not its sales. Maritime route diversions, longer transit times, and higher insurance premiums are typically the first signs, and they hit hard in an industry that runs on tight margins. A sustained rise in oil prices compounds the problem, driving up both ocean freight and ground transportation costs and putting pressure on negotiations with supermarkets and international buyers.
Despite these headwinds, the industry enters this scenario better prepared than in previous crises. The disruptions of the COVID-19 pandemic and the Russia-Ukraine war tested global fresh fruit supply chains and held.
"The industry has shown resilience. During the pandemic and the war in Ukraine, supply was maintained and alternative logistics routes were found. Today we have stronger contingency plans and greater flexibility in routes and commercial agreements. The key is to anticipate and react quickly to sustain shipment continuity," said González Pita.
© Salix Fruits
As for the Middle East as a market, the company views it as a relevant but not primary destination: an opportunity for diversification, particularly for bananas and certain long-shelf-life fruits. The company's main focus remains on North America, Europe, and Asia.
To stay ahead of potential disruptions, the company is monitoring three variables: the evolution of the conflict and potential restrictions on maritime routes; oil prices and their impact on transportation costs; and the reaction of international markets, particularly in Europe and North America, where inflationary pressures could trigger price renegotiations.
"Our goal is to guarantee continuous supply and maintain the trust of our customers, even in complex scenarios," said González Pita.
For more information:
Salix Fruits
[email protected]
www.salixfruits.com
