Fruit Processing Industry alarmed by high fruit prices and potential risk of shortages_10.07.2007

Fruit processing companies within OEITFL and EFPMA are seriously concerned by the increase of their production costs due to this year’s exceptionally high fruit prices and the fruit supply situation in general.

The manufacturers of jams, fruit spreads and fruit preparations (for the dairy and bakery industry) face price increases for all major fruit such as strawberries, raspberries, apples, cherries and apricots.

Last year saw some record prices for most major fruit due to extreme temperatures. While fruit prices are traditionally volatile due to unpredictability of crop and weather, this year’s situation is by many companies described as dramatic.

With weather conditions being the main factor – late frosts during blossoming in Poland and Hungary and heavy rain in recent weeks in eastern and central Europe – there are also some reported labour shortages which means that fruit is left on the plants and trees.
• Strawberries in Poland are estimated to be down some 30 to 40 % compared to 2006, and even 65 % down when compared to 2005. Quality on average is poor, there is great demand and stock levels are low, making it a) very expensive (prices are between 40 % – 75% above last year’s prices) and b) difficult to buy large quantities of good quality.
• Raspberries in Poland are estimated to be down some 20 % compared to last year, but also frost damage in Hungary and very high prices in Serbia (where the cold stores are empty)
• Plums in Poland could be down as much as two thirds on the 2006 crop
• Sour Cherries in Poland expected to be down 20 % - 45 %. A poor crop in Hungary led to the high price level (which nearly doubled compared to 2006)
• Apples in Poland are estimated to be down 50% compared to last year, with a reported shortage on the market and price increase in the range of 40 % - 75 %.
• Blueberries are in huge demand, with no carry-over at all. Even if the crop is normal (too early to say), it will not be sufficient to compensate the high demand.
• For apricots, most processors of semi-processed fruit report price increases of around 40%.
• Among other fruit in short supply, blackcurrants stick out with an extreme price hike

The present fruit situation aggravates the overall increase of production costs: prices for jars and cans went up, as did the price for glucose and utilities such as gas and electricity, making for very unfavourable economic conditions.

In view of the above market situation, the manufacturers of fruit based products will have no choice but to increase their prices to compensate, if only partially, the considerable cost rises.