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Cherry Production Decline Causes Concern in Global Market

15th July, 2023

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As the cherry season progresses, the global market is facing a significant decline in cherry production, resulting in limited supplies and higher prices. Unfavorable weather conditions, persistent rainfall, and pest attacks have adversely affected cherry crops in several key producing regions, leading to concerns among suppliers, growers, and consumers.


Italy, a major cherry producer in Europe, has experienced a challenging start to the campaign. Persistent rainfall has caused significant fruit cracking, resulting in limited supply and higher prices for early cherries. The adverse weather events in northern Italy, particularly in Emilia Romagna, have further impacted the region's cherry production. The situation in Italy has led to a 70% decrease in cherry supplies and an 80% reduction in volume for the mixed fruit industry compared to last year. This year's forecast for 16-18mm cherries indicates an extremely limited supply, with virtually no availability expected.


The impact of the cherry production decline is felt in other European countries as well. France has faced a crisis in cherry production, with losses ranging from 70% to 90%. Violent climatic episodes and pest attacks, including the damage caused by Drosophila suzukii flies, have devastated cherry crops, leading to a significant increase in prices. 


In Belgium and the Netherlands, cherry supplies are scarce, leading to soaring prices in supermarkets. The chronic shortage of cherries has led to record-high prices of €10-12 per kilo at fruit auctions. Imports from France and Spain, which usually supplement the Belgian market, have been affected by heavy rains, exacerbating the shortage.


China, a major consumer of cherries, is also experiencing a decline in production. Shandong, one of the prominent cherry-growing regions in the country, has seen decreased production due to adverse weather conditions and delayed harvests. Frost and drought have affected the quantity of cherries available, with estimates suggesting a one-third decrease compared to the previous season. However, the cherries' quality is expected to be high, with a sweeter taste attributed to the drought and little rain during the production season.


While the decline in cherry production poses challenges, it also presents opportunities for market players. Greece anticipates significant volumes of cherries this year, offering potential growth for exporters seeking new markets. Similarly, South Africa had a fruitful season, despite economic challenges, and aims to expand its cherry exports to diverse destinations. Despite the favorable outlook, Greek cherry exporters face tough competition in the European market, particularly from countries like Serbia, which have lower production costs.


The cherry market in North America is also showing promise, with growers and shippers in California and the Pacific Northwest expecting improved volumes compared to the previous year. However, a late start to the season may impact promotional activities, and prices are expected to remain high during the early stages.


In the Pacific Northwest, which includes regions in the United States and Canada, cherry growers and shippers are anticipating a substantial increase in production compared to the previous year. An estimated 20-21 million cases of cherries are expected, significantly higher than the 12.4 million boxes produced last year. 


The decline in cherry production worldwide has significant implications for customers and end-users. It is crucial to stay informed about the market conditions and adjust purchasing plans accordingly. Exploring substitute fruits, such as red papayas, can help meet the demand for cherries in the face of limited supplies.


As the cherry-related situation continues to unfold, industry players will provide updates to keep customers informed about market trends. Adapting to the changing landscape and exploring alternative options will be key to navigating the challenges posed by the decline in cherry production.


References:

1.Fresh Plaza: "global market overview cherries." 

2.Brussels Times: "cherry prices in Belgium soar on back of shortage." 

3.EFA News: "France: cherries production drop up to 90%."


#CherryMarket #SupplyShortage #MarketTrends #GlobalIndustryInsights #AdaptandProsper #CountreeFood

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