The current COVID-19 pandemic and associated complete lockdown of highly affected countries, such as Italy and Spain, and strict restrictions at Internal EU borders, as well as hoarding by consumers have resulted in changes in the demand and supply of fresh produce available in Europe.

Shift in demand from Food Caterers and Markets to Supermarkets and Home Delivery

As consumers all across Europe rushed into stock up on essentials, empty shelves were seen in supermarkets and retail stores in many European countries. This has led to an increase in revenue for supermarkets. In Belgium the increase in retail produce sales of processed vegetables have offset the decrease in demand from large caterers, such as schools and hospitals. However, in Italy, which is the country in Europe most affected country by COVID-19, even though retail orders have increased by 30%, order from the hotel and catering industry have fallen by 80% during the past three weeks, resulting in a sharp drop in overall consumption.

Despite an increase in the demand for potato, as a staple with a long shelf life, in certain European countries, in Belgium, the potato sector has been particularly affected due to the decrease in demand of potatoes and chips from industrial kitchens and fast food companies.

The closure of markets in the Netherlands has placed market traders at a disadvantage. In the UK, consumers have increased at local supermarkets, where they can purchase produce that has arrive directly from the wholesale market.

In France and Germany, traders who sell direct to trading companies have been hot hard, with a German trader Germany who mainly supplies catering companies reporting of an approximately 90% drop in the turnover. However, these traders are turning to other sales channels and are using other modes of delivery, including home delivery of fruits and vegetables, as consumers are avoiding public spaces.

However, wholesalers expect some decreases in the volumes in fruit and vegetables due to delays expected across the board, rather than a lack of volume itself.

Increased demand for basic fresh produce with a longer shelf life and beneficial effects

The demand for citrus fruits is increasing due to their vitamin C content. Italy, France and Spain have all reported of an increased demand in citrus fruits. Other fresh produce products that are thought to have health benefits, such as ginger and garlic, have reported to show a high level of demand in the Netherlands.

As the public continues to hoard essential supplies, as seen in almost all countries worldwide, fresh produce with a longer shelf life, including onions, cabbage, apples and carrots, have increased in many European countries. The demand for bananas have also increased in Spain, along with a rise in prices, which has now come down, as Spanish consumers have stopped hoarding as much.

Decreased demand for luxury produce

The demand for luxury products, such as asparagus in France, as well as artichoke and strawberries in Italy has decreased. The prices of artichokes fell by an average of 50% in Italy, due to low consumption and the closure of markets and restaurants, where the price of strawberries showed a similar decrease of 40-50%. Traders in Spain fear that the demand for other luxury products, such as mangoes, avocados and berries, will also fall due to the economic recession. 

Labour shortage issues affect the ability of growers and traders to meet demand

In order to keep up with the increasing demand form supermarkets, growers in Spain are trying to harvest as much as possible and work longer. This increase in demand has also increasing the demand for exports of fruit and vegetables from Spain to other European countries. Increased demand, production issues and rising costs have led to tension between importers and exporters.

However, other countries in Europe are expecting to face issues with meeting the growing demand due to labour shortages. UK has forecasted an imminent shortage of Eastern European workers, which had already been feared due to Brexit and is expected to get worse due to the coronavirus pandemic. In Germany, the first asparagus of the season is ready, but there is an urgent need for labourers. Similary, in Hungary, the first batch of Chinese cabbage will be ready for harvest next week but seasonal workers from Romania are almost all staying at home. This shortage of seasonal workers is also expected to affect the harvesting of Hungarian export products, such as peppers, tomatoes, cherries and plums.

In Greece, the biggest challenge exporters expect to face is to be able to deliver orders on time due to problems at internal EU borders.

Source: www.freshplaza.com – 20th March 2020