Canned Deciduous Fruit Annual

An Expert's View about Food , Beverages and Tobacco in Spain

Posted on: 22 Nov 2011

In MY 2011/12 Spanish canned peach production is forecast at 95,000 MT, similar to previous year figures. The canning industry in Spain is going through rough adjustments and consolidation of the sector continues due to the financial crisis, the difficulties in the access to credit and the increasing competition from countries like China.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 10/28/2011 GAIN Report Number: SP1120 Spain Canned Deciduous Fruit Annual 2011 Approved By: Robert Hanson Agricultural Attach? Prepared By: Arantxa Medina Agricultural Assistant Report Highlights: In MY 2011/12 Spanish canned peach production is forecast at 95,000 MT, similar to previous year figures. The canning industry in Spain is going through rough adjustments and consolidation of the sector continues due to the financial crisis, the difficulties in the access to credit and the increasing competition from countries like China. Canned Peaches: Production: The latest figures from Spain?s Ministry of the Environment and Rural and Marine Affairs (MARM) expect a good fruit crop for MY 2011/12. Table 1 shows Spain?s annual harvested production for peaches and pears: Table 1. Annual Fresh Fruit Production (MT) MY 2009/10 MY 2010/11 MY 2011/12 Fresh Peaches 796,100 782,300 854,900 Fresh Pears 464,000 454,000 467,600 Source: MARM Clingstone peach crops continue their gradual descent, as the demand for fruit intended for processing continue to decrease, although deliveries to processors have remained relatively flat in the last years. This is a result of robust demand in both the domestic fresh market as well as for export, as fresh peaches almost always command a premium price relative to that offered by processors. Furthermore, the inclusion of new varieties in the Spanish productive program (such as the flat peaches or Paraguaya) also explains this increase in production. The common factor for current MY in most Spanish producing regions is that the quality and size of the fruit are very acceptable. In Spain, the canning fruit industry is concentrated in the Murcia Region, particularly for peaches. In this region, during the 2011 summer, the average price for peaches paid by the processing industry was 0.27?/kg for the higher quality fruit. Prices this year were well above those received last year, which barely covered production costs. The causes for this price increase was, in the case of cling peaches, the important reduction in production due to the uprooting of these varieties to pursue more lucrative crops or the fresh market and the damage suffered by the trees from hail in the months of April and May, that affected the main production areas of cling peaches in the Murcia region. The sector has experienced significant consolidation in the last decade. Market and financial pressure have left around 10 peach and pear processors in the market. The canned fruit industry in Spain is going through a tough situation. The decrease in sales, the increase in costs of production, impossible in some cases to pass on to consumers, the companies? liquidity problems and the lack or the difficult access to credit pushed some traditional companies out of business. Furthermore, the strong euro makes it difficult for Spanish packers to compete with other canned peach producers. The dollar/euro exchange rate has reduced Spain?s competitiveness in the United States with respect to other countries, particularly China. Thanks to advances in packaging and transportation, consumers can now enjoy fresh peaches throughout much of the year. Processed product innovations - like peach puree - may provide greater margins and, thus, increased incentive for processors to pay higher prices to secure raw product. Table 2. Canned Peach Production Spain Canned Deciduous Fruit 2011 2 Peaches, Canned 2009/10 2010/11 2011/12 Spain Beginning Stocks 20,000 20,000 20,000 (MT, Net Weight) Production 94,000 100,000 95,000 (MT, Net Weight) Imports 5,275 3,026 4,000 (MT, Net Weight) Total Supply 119,275 123,026 119,000 (MT, Net Weight) Exports 44,359 46,575 50,000 (MT, Net Weight) Domestic Consumption 54,916 56,451 49,000 (MT, Net Weight) Ending Stocks 20,000 20,000 20,000 (MT, Net Weight) Total Distribution 119,275 123,026 119,000 (MT, Net Weight) Chart 1. Market share of canned fruit by category Source: Alimarket Consumption: Canned fruit consumption has remained stagnant in Spain as consumers prefer fresh fruit when available. In 2010, according to some studies, the consumption of canned peaches plummeted by almost 16 percent, as the result of lower prices of fresh fruit and the availability of more attractive refrigerated products. Spain Canned Deciduous Fruit 2011 3 According to industry sources, market promotion has not been effective in the past. Canned fruit is a commodity with a mature market and traditional uses. Individual companies have sponsored market promotions and diversified product packaging, but it is difficult to promote the consumption of such products. Trade: In 2010, Spain was the second largest EU exporter of canned peaches after Greece and the sixth in the world. Almost all Spanish canned peaches trade occurs within the EU; on the export side, the Spanish industry exports to the Middle East and Switzerland. However, EU countries like France, Portugal and Germany are the major export markets. All of these export markets can also be easily serviced by competitors from within the European Union, as well as from other world exporters, including increasingly tough competitors like China. Table 3. Spain Canned Peach Imports (MT) MY 2008/09 MY 2009/10 MY 2010/11 Germany 1,900 1,492 818 China 978 1,278 570 Portugal 589 768 542 France 313 632 422 South Africa 248 278 256 Greece 679 531 246 Italy 71 98 153 Netherlands 39 31 17 Others 106 168 2 World 4,924 5,275 3,026 Table 4. Spain Canned Peach Exports (MT) MY 2008/09 MY 2009/10 MY 2010/11 France 6,377 8,602 10,128 Portugal 8,618 8,376 7,636 United Arab Emirates 3,772 2,790 6,698 Germany 5,250 5,236 4,349 United Kingdom 5,588 5,222 3,097 Switzerland 386 309 1,839 Belgium 1,515 1,515 1,591 Iran 966 2,956 1,547 Others 12,175 9,352 9,709 World 44,646 44,359 46,575 Source: Global Trade Atlas (GTA) Unit: Gross canned weight converted into net weight by application of a 0.83 conversion factor. Spain Canned Deciduous Fruit 2011 4 Stocks: There are no official stock figures available. Policy: On January 1, 2008, the Single Farm Payment (SFP) Scheme for peach and pear processing was implemented ? initiating the full decoupling of subsidy payments from production. This shift from production support to direct aid to producers is intended to create a more competitive and market- oriented sector and increase the use of eco-friendly cultivation and production techniques. Commission Regulation (EC) No 1580/2007 lays down the rules for the implementation of the reform. The SFP will be based on the average of the subsidy payments received by producers during the reference period 2003/04, 2005/06 and 2006/07. Only qualified farmers who received a price subsidy during the reference period are eligible to participate in the SFP scheme. Marketing: The pur?e market is expending in Spain and the most important producers have opened a pur?e line, as it is probably the most interesting product for the industry at the moment. Pur?e is intended for industrial use to produce fruit yogurt, fruit creams, smoothies, jams, ice creams, etc. Canned Pears: Spain Canned Deciduous Fruit 2011 5 Production: Table 5. Canned Pear Production Pears, Canned 2009/10 2010/11 2011/12 Spain Beginning Stocks 2,000 2,000 2,000 (MT, Net Weight) Production 16,000 15,000 15,000 (MT, Net Weight) Imports 4,441 4,241 5,000 (MT, Net Weight) Total Supply 22,441 21,241 22,000 (MT, Net Weight) Exports 11,363 9,775 10,000 (MT, Net Weight) Domestic Consumption 9,078 9,466 10,000 (MT, Net Weight) Ending Stocks 2,000 2,000 2,000 (MT, Net Weight) Total Distribution 22,441 21,241 22,000 (MT, Net Weight) Trade: Table 6. Canned Pear Imports (MT) MY 2008/09 MY 2009/10 MY 2010/11 China 2,675 2,820 2,501 South Africa 32 513 747 Germany 377 526 515 Italy 266 256 293 Portugal 54 76 134 Greece 19 20 20 Others 113 231 31 World 3,536 4,441 4,241 Spain Canned Deciduous Fruit 2011 6 Table 7. Canned Pear Exports (MT) MY 2008/09 MY 2009/10 MY 2010/11 France 4,792 5,120 4,122 United Kingdom 662 810 895 Germany 1,185 689 824 Portugal 800 1,143 639 Belgium 543 491 388 Netherlands 291 235 324 Switzerland 208 217 291 Austria 119 100 286 Others 2,423 2,558 2,007 World 11,023 11,363 9,775 Source: Global Trade Atlas (GTA) Unit: Gross canned weight converted into net weight by application of a 0.83 conversion factor. Canned Peach Pur?e: Trade: Table 8. Canned Peach Pur?e Imports (MT) MY 2008/09 MY 2009/10 MY 2010/11 Costa Rica 1,856 1,709 2,505 Germany 1,531 2,064 2,398 France 1,133 1,326 1,862 Netherlands 1,267 1,610 1,150 Guatemala 0 590 1,116 Ecuador 432 557 691 Turkey 403 508 535 Switzerland 0 278 512 Others 1,750 1,606 1,640 World 8,370 10,248 12,407 Spain Canned Deciduous Fruit 2011 7 Table 9. Canned Peach Pur?e Exports (MT) MY 2008/09 MY 2009/10 MY 2010/11 Czech Republic 206 115 16,715 France 8,043 5,966 6,182 Netherlands 2,541 3,668 4,985 Germany 4,082 2,356 2,882 Portugal 2,613 2,802 2,024 United Arab Emirates 286 1,443 1,799 Saudi Arabia 639 1,278 1,653 Russia 10 10 1,256 Others 8,096 6,550 6,872 World 26,515 24,188 44,367 Source: Global Trade Atlas (GTA) Unit: Gross canned weight converted into net weight by application of a 0.83 conversion factor. Spain Canned Deciduous Fruit 2011 8
Posted: 22 November 2011

See more from Food , Beverages and Tobacco in Spain

Expert Views    
Dairy and Products Annual - EU-27   By Foreign Agricultural Service
Canned Deciduous Fruit Annual   By Foreign Agricultural Service
Wine Annual Report and Statistics   By Foreign Agricultural Service
Hot Tips    
Food and Agricultural Import Regulations and Standards in Spain   By Foreign Agricultural Service
EU Agriculural Policy Institutions & Decision Making Process   By Agriculture and Agri-Food Canada