Category Intelligence on Vegetables covers the following
Hard to find data on vegetable market size, cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific vegetables market research, vegetable market news, negotiation and sourcing advice
Global Overview of the Vegetables Industry And Vegetables Market Growth
Prices can be expected to be the lowest during harvest and post-harvest periods and higher during off-season. Ideally buyers could capitalize the low price periods and procure a higher share of their raw materials requirement and secure contracts that ensure a steady supply throughout the year. Bulk buying would incur additional costs like cold storage and inventory maintenance and spoilage losses. The buyer should also anticipate the surge in demand during the harvest periods, which could push prices up slightly and plan their procurement strategy accordingly.
The potato market in Europe is now clearly divided between north and south. In the countries where the impact COVID-19 is high, the demand is rising, but especially for local products. The demand in Italy has tripled for a short time at the start of the pandemic, and Spanish growers are barely able to keep up with the demand
In North America, there is uncertainty about the availability of potatoes for the market, while in Oceania the weather conditions have resulted in a lower yield per hectare
Potato growers in the US, reduced acreage by around 8 percent since 2014, in an attempt to improve market prices, which dipped steeply owing to surplus production of potatoes, proving unprofitable for growers
Processing potatoes, which account for about 12 – 15 percent of production is expected to display the fastest demand growth, particularly the frozen fries sector. Fresh potato consumption is estimated to gradually decline in the long term
A rise in demand for starch potatoes can be expected to increase post the removal of the EU sugar quota in 2017, with an expected increase in production of starch-based sweeteners
The NAFTA renegotiation and US-China trade conflict will continue to impact potato trade in the coming years, with the U.S. and China competing for alternate markets for exports
Lettuce production in major producing regions, like Europe, is expected to witness a favorable season, supported by a cold spring. With the end of the season for Spanish lettuce, the Dutch lettuce is likely to have a fairly good demand
The recent outbreak of E. Coli in romaine lettuce has caused withdrawal from markets, which has narrowed the supply of lettuce and increased demand for other lettuce varieties significantly
Japanese Ministry of Health has asked to hold back U.S. imports of romaine lettuce until FDA or CDC notifies the changes in regulatory status for romaine lettuce. The U.S. accounts for more than 90 percent of Japanese lettuce imports with a value of about $2.5 million in 2017
The ongoing US-China trade conflict has created opportunities for neighboring markets like Australia which could witness access to China markets for their lettuce
Spain and the U.S. are the leading suppliers of lettuce, accounting for about 36 percent and 15 percent of the world’s lettuce exports, respectively. The fastest emerging players in the export market are Mexico and Lithuania
Canada, Mexico, Japan, Korea, and Saudi Arabia constitute about 90 percent of the US’s lettuce exports, whereas Spain’s lettuce exports cater to the EU market primarily
The trade embargo by Russia, which accounts for about 40 percent of Turkey’s lettuce exports, have impacted Turkey’s trade volumes, which is scouting for alternate markets for its lettuce
Also, detection of “flower thrips” in Turkey’s lettuce, brought down the country’s exports further in 2015/2016
The tomato market is quite unstable due to unprotected cultivation shifting from Northwestern Europe to Southern Europe. The acreage devoted to the crop in Southern Europe has been declining for years and this year there has been a reduction of between 10-20 percent
The U.S. Department of Commerce announced a withdrawal from the Tomato Suspension Agreement, which could have major financial consequences for Mexican tomato growers with higher costs, including a 17.65 percent tariff for Mexican tomatoes
In the U.S., the oversupply and weak demand for processing tomatoes after 2 years of increased production has led processors to decrease contract tonnage by nearly 8–10 percent, making it unprofitable for growers
China, the U.S., and Italy are the leading producers of processing tomatoes. About 60 percent of Italy’s crop was damaged due to bad weather, which would lower supplies and could improve the market situation in terms of returns
With the planned reduction in acreage and depleting inventories of processors by the end of 2017, the market can be expected to improve for both growers and processors
Overall, the supply of onions in 2020 is expected to remain firm, supported by shrinking output, reduction in acreage in the major growing regions and export markets, like the U.S., Canada, and Europe
Despite a supply glut in markets, like India, unfavorable weather in markets, like Europe and the U.S., are likely to lower onion supplies in the ensuing season
India seems to be getting quieter now that two Indian regions will soon deliver a new harvest. This is reducing the import of onions. Onion cultivation is expected to increase by 7 percent this year
Increased cultivation, owing to previous year’s high prices and damage due to hailstorm, led to a surplus of red onions, but of poor quality, which reduced farmer’s returns
The lowered production in some major growing regions could offset the oversupply situation and create a favorable market condition for onion suppliers
China’s production volume was lower by around 20 percent, owing to spring cold and hailstorm damage of onion crop
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