The French tomato market is off to a good start this year. Buoyed by steady demand and a still measured supply, the campaign is opening under particularly favorable conditions. This view is shared by Isabelle Georges, director of Solarenn, who points to a smooth and reassuring start, in terms of both sales and quality.
© Solarenn Les Petites, in new 1 kg packaging
A smooth, trouble-free start to the season
"We got off to a good start, with stocks running smoothly and very few quality concerns," explains Isabelle Georges. In these first few weeks of the season, volumes are still moderate but sufficient to supply a dynamic market. As a result, products are selling easily, and trade is flowing smoothly.
Demand is "sustained and regular across the whole range," ensuring a good balance between supply and consumption. This situation is all the more welcome given that the start of the season is usually more uncertain. The only downside is the occasional frustration of some clients due to volumes that are still limited. "We sometimes have to manage the satisfaction of clients who would like more goods," explains Isabelle Georges.
Less foreign competition
This favorable context could be partly explained by a reduction in competitive pressure. "We speculate that bad weather affected some of the Moroccan production at the end of February," according to Isabelle Georges.
This drop in supply, especially in the small tomato segment, may have reduced the Moroccan presence on the European market. A situation that automatically benefits the operators present by limiting saturation problems. "We are not in a market where there is overproduction in relation to the spring demand."
Satisfactory prices, but vigilance is key
Against this fluid backdrop, prices are holding steady at a level that is deemed satisfactory. "When the market is moving well, prices are good, even if we could always do better," admits Isabelle Georges. However, particular vigilance is required to ensure that prices do not reach a level that would dissuade consumers. "We have to be careful that the prices on the shelf do not become prohibitive and put the brakes on the act of buying." It is a delicate balance to maintain, especially as we approach the ramp-up in volumes.
April will mark a turning point in the campaign. Volumes will gradually increase. The challenge will be to maintain dynamic consumption while avoiding excessive pressure on prices. "We will have to negotiate this turning point while maintaining a fair balance in terms of reasonable prices, so as not to break consumption when the volumes arrive."
Sharp rise in logistics costs
Despite this generally positive picture, one concern remains: transport costs. "In March, they were still very reasonable, but they have been rising sharply since last week," explains Isabelle Georges.
This increase is having a direct impact on operators' margins. "At the same selling price, there is less left over for production." Faced with this situation, it is inevitable that costs will be passed on. "We have a duty to pass on these increases to our clients, and we will be obliged to do so at some point."
In a market that is still balanced, this factor could quickly become a determining factor for the rest of the campaign.
For more information:
Nathalie Jouan
Solarenn
[email protected]
Elisabeth Calle
[email protected]
