Food prices are rising rapidly. But strawberries from Germany are sold much cheaper than a year ago.
(Photo: dpa)
Dusseldorf Consumer sentiment in Germany remains gloomy. That’s why many Germans are spurning local strawberries and asparagus this year. On the other hand, foreign goods flood the trade almost all year round.
Fred Eickhorst, Managing Director of the Association of Asparagus and Berry Growers, explains the difficult situation in the industry in an interview with the Handelsblatt.
Mr Eickhorst, Pentecost is strawberry and asparagus season. Nevertheless, German producers are sounding the alarm. Why?
Our industry has been a winner of the pandemic. But this year the Germans are very reluctant to buy local strawberries and asparagus. We estimate that sales have collapsed by up to 30 percent. It is thus well below the level of 2019. The entire German fruit and vegetable industry is suffering from considerable losses. Since the Ukraine war, the Germans have been shopping differently. They are increasingly turning to staple foods and canned or frozen foods.
So the Germans treat themselves to fewer fresh and indulgent products?
Fears of war and the future as well as inflation weigh on and unsettle consumers. They keep their money together. The Germans literally save it from their mouths. On vacation, on the other hand, people are less stingy.
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What influence do prices have on consumer restraint?
Everyone complains about expensive fruit and vegetables. But strawberries and asparagus are cheaper than ever this year! In the week of Ascension Day, a kilo of local strawberries was sold for an average of 4.90 euros. A year earlier it was 7.73 euros, according to figures from the industry service AMI. German strawberries are becoming slow sellers – although they are significantly cheaper than in previous years. The same applies to local asparagus. At 6.92 euros per kilo, it is 14 percent cheaper than a year earlier.
Why have prices dropped so much. Is it just the lower demand?
A lot of things have come together this year. Because of the high energy prices, strawberry growers in the Netherlands have heated their greenhouses less. As a result, Dutch strawberries came onto the market later, at the same time as the first fruits from southern Germany. The cold weather also delayed the harvest in southern Europe. This is how Spanish strawberries are still advertised.
Asparagus stay in the ground – number of farms decreases
The 500 gram bowl of German strawberries is currently available from the discounter for 1.79 euros. How much of it reaches the producer?
The farmers get just half. Strawberries cannot be produced profitably in this country for 90 cents to one euro per kilo. So far, the strawberries have mainly come from the foil tunnel, which is more expensive than outdoors. The North German strawberry farmers have burned money with every bowl since the start of the harvest three weeks ago.
Why are farmers still harvesting?
Strawberries must continue to be picked, even if the farmer does not earn any money. Otherwise the berries will go moldy on the bush and the entire harvest season will be a thing of the past. When cutting asparagus, you can take a break in between. That’s why German asparagus farmers have left at least 30 percent of their production in the ground because it’s simply not worth selling.
Many Germans are doing without local asparagus this year, which many consider a “luxury vegetable”.
(Photo: dpa)
Are there too many strawberry and asparagus fields in Germany?
Farmers shred their strawberry fields and plant corn instead. That’s more lucrative, because corn prices have risen sharply since the Ukraine war. Admittedly, we exaggerated domestic production years ago. Strawberry areas have been decreasing again for five years, and for asparagus for three years. The number of companies decreases. Only direct marketers can still achieve reasonable prices through farm shops. Their customers value fresh regional goods. Things are looking bleak for growers who sell strawberries to food retailers.
Can they still keep up with cheap imports from the south?
In Germany, the production of strawberries is the most expensive. We can no longer compete with foreign suppliers in the supermarket. Strawberries from Spain have been available there for around 1.50 euros in a 500 gram bowl for weeks. The trade plays off brutally cheap strawberries from Morocco or Spain against local goods. The food retail industry sounds like they want to promote regionality and seasonality. Unfortunately, the reality is different.
“Since the start of the harvest three weeks ago, the North German strawberry farmers have burned money with every bowl,” says the managing director of the association of asparagus and berry growers.
(Photo: Association of Asparagus and Berry Growers eV)
But ultimately it is the consumer who decides what he buys…
Never before have so many strawberries been sold between January and March – of course only those from abroad, such as from Morocco, a country with a dramatic water shortage. The strawberry is changing from a seasonal product to a year-round product. Consumers always state that they want to shop regionally and seasonally. But they don’t. Especially not since they now pay attention to every cent.
Will the demand for local strawberries and asparagus increase at least at Pentecost?
Pentecost is the weekend with the highest sales for strawberries and asparagus. The weather has been cool the last few days. So the prices are going up a bit. But it is questionable whether this will last long. The supermarkets and discounters are already advertising special offers for after Pentecost, with which they sell off German asparagus.
Mr Eickhorst, thank you very much for the interview.
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