In December, FruitPro traded the first organic bell peppers from Israel. That was because this Dutch company is now a Galilee Export subsidiary. Galilee Export is a well-known major Israeli player in the fruit and vegetable sector. Bell peppers are nothing new to them. At the same time, exporting these to Western Europe is noteworthy.
"Galilee focuses most of its conventional bell pepper exports on Russia and surrounding countries. The organic varieties don't sell so well there. It costs more to produce them, making it much harder to recover from sales prices in that region. Things are going better in Western Europe, though" says Thomas Pos, FruitPro's account manager.
The bell peppers enter Europe from Israel through Koper, Slovenia. "To sell organic products in Europe, Galilee Export needed an Organic certified European trading company. Since Israeli growers had organic bell peppers on offer, we found out in early December that there were plans to export them."
"We've been receiving containers, which we stored at Cool Control in Maasdijk, the Netherlands, and from there, we sold our product. At the same time, some products go directly from Koper to customers. In that case, it doesn't come to the Netherlands first. That's because sea transport to Slovenia takes four days, thus the product quickly reaches clients from there," says Thomas.
Surcharge
The Israeli bell pepper season runs from December to roughly mid-April. FruitPro's first shipments were well received. Yet, the company has no immediate intention to supply organic bell peppers year-round. "We're not yet looking for countries outside the Israeli season. Our assortment already includes supplies from other countries. We offer those at the same time, but, we're obviously not competing with ourselves."
Most of FruitPro's organic bell pepper buyers are from the Dutch and German wholesale, retail, hospitality, and foodservice sectors. Though Thomas has no idea where they, in turn, sell these. "What I do know is that it's easier to sell organic peppers in Western Europe than in Eastern Europe. There the price difference with conventional produce is a greater hindrance."
"Yet, it's sometimes hard in the West too. For example, prices were high in week 2 due to Spain and Morocco experiencing tougher growing conditions. If prices are under pressure, and these countries have plenty of supply, it can be difficult to earn organic bell peppers' surcharge."
No green ones
In Israel, export bell peppers are cultivated over 50-60 hectares in the Arava desert. Most are grown on small-scale family farms located in a region with a unique climate. Israeli bell peppers are known for their distinctive sweet flavor, thanks to the area's salty air. "These bell peppers are looking good these days too," adds Pos.
"They used to be not as aesthetically pleasing as produce from other countries. Yet, their flavor made up for that." However, since Israeli bell peppers have been struggling in recent years, the acreage has shrunk. Thomas blames European prices. "Those are often lower, so growers are always looking for alternatives."
Alternatives are indeed found in the specialties corner with things like sweet pointed peppers, snack bell peppers, and chilies. Though, Thomas doubts these can be considered specialties anymore. "These products, too, are expanding. So, does it make sense to consider them a niche? Thus, to stand out among others, growers are looking further into packaging options. They all now do their own packaging."
"There's much development there, with pre-packaged products on the rise. For instance, Palermo sweet pointed peppers are packed in pairs, threes or any desired weight too." There are no more true 'traffic lights'. "In Israel, they don't grow green; only red, yellow, and orange varieties. So the traffic light never turns green," laughs Thomas.
Exchange rate
Staying with the green theme for a bit, is this farming done sustainably? "As avocado specialists too, we know more than one thing on water use. Of course, bell pepper cultivation also uses water, but increasingly less. On top of that, there are the constant challenges of crop protection, considering also that only so many products are allowed. Yet, our bell pepper farm is located in an area with a unique climate, and temperatures form a natural defense against diseases and pests."
Israeli growers don't even have to heat their crops. Unlike their European counterparts. Yet, are Israeli growers still benefiting from the energy crisis? The account manager doubts it, though that is more because of the exchange rate. "Northwest European volumes are expected to increase later. That could be an advantage for Israel."
"However, the poor Israeli shekel/EUR exchange rate cancels that out. The exchange rate plummeted recently, when the shekel's value dropped by ten percent. This means that growers still don't earn very much, even if you deliver larger quantities in a good season. After all, their product prices can't rise by 60%."
Despite this disadvantage, FruitPro is sure organic Israeli bell peppers will be available on the market in the coming months. What if cultivation in Israel stops this season? "Fruit remains our main focus. We're keeping the option of sourcing bell peppers from elsewhere open, though we're not currently considering that."
"We can switch quickly, as we've done before. Even if, say, other organic vegetables from Israel become available. We don't have a huge range to choose from at present. Yet, if Israel has the products, they'll look to the West. Western Europe simply pays better for organic goods," Thomas concludes.
For more information:
FruitPro
Handelsweg 180
2988 DC Ridderkerk
Tel. +31(0)180 763 390
Thomas Pos
[email protected]
[email protected]
www.fruitpro.nl