Many eyes across Europe and from supplying countries like Israel and Morocco are on Spain to see what the effect of the damaging rains and flooding will have on their bell pepper growing and exports. Despite the damaging rain and floods Spanish growers are still seeing a high and fluent demand for bell peppers. And although peppers, especially the California type, are the product that has recorded the greatest losses, supply at this point in the campaign is developing normally in Spain. In the United Kingdom they had an almost uninterrupted supply of peppers from Almeria, Spain. In Sicily, Italy a major pepper grower in the north says that the very hot weather conditions in 2024 caused a yield loss of 25-30%. The local pepper season is coming to an end in the Netherlands and Belgium with shrinking acreage for yellow peppers. In Germany pepper supply comes from many countries. Yellow peppers currently come mainly from the Netherlands and Spain, although German and Belgian product is also offered here and there, green peppers come from Turkey also. The bell pepper season in Israel is off to a "lazy start" but looks promising. The slow start in harvesting from Israel will pick up, with supply set to increase to normal levels in the next week.
In South Africa growing peppers has challenges and is described as a tough market." Sunburn risk and hail on peppers remain high. In Morocco bell pepper volumes have increased significantly in the Souss Massa region. Many tomato growers have replaced part or all of their acreage with peppers due to the difficulties of tomato production. The Southeast hurricanes has strengthened pepper demand in North America. Pricing is expected to remain high with the upcoming Thanksgiving and holiday season driving demand further. Mexican peppers are also seeing strong demand this year. Paraguay has recently started exporting peppers to their neighbouring country of Argentina.
United Kingdom: Almost uninterrupted supply from Almeria, Spain
Despite the tragic situations in some parts of Spain the bell pepper export continues. One UK importer said that they had had an almost uninterrupted supply from their growers in Almeria.
The importer sources peppers from a grower in southern Spain which has not suffered the devastation experienced in Valencia and other parts of Spain, but growers in the region have had to contend with heavy rain and massive hail storms. Despite this they only missed one day of loading, on the day of the flooding in Eastern Spain. Regular deliveries have been arriving since 20th October.
There was a bit of a cross over with the Dutch, Belgian and English seasons, but that is normal. Prices out of Spain have been gradually increasing due to the extreme weather. The importer said he understands that there has been quite some damage to the tunnels from the heavy rain and hail, he would still expect volumes to increase from now, but at the moment the continued bad weather makes it difficult to predict and he thinks there will be a few difficult weeks ahead.
Italy: Sicilian drought a challenge to production
A major pepper grower in northern Italy says that the weather conditions in 2024 caused a yield loss of 25-30%. The scorching heat in August damaged the plants and the autumn harvest was compromised. In October, only second class peppers were harvested, with an average price of 1€/kg. However, this figure shows how high pepper prices have been throughout the campaign. In fact, in July, the average price paid to the producer was between 2 and 2.30 €/kg for the first quality product. The farmer concludes by saying that the weather causes a lot of problems for pepper growing, as it is a very delicate and complicated crop to manage.
The pepper growing campaign in Agro Pontino, central Italy, is now over. A farmer says: "This was our first year and we are very satisfied, both in terms of production and marketing. For the next campaign in 2025, we will increase the area cultivated with this reference by 20%".
As for the work carried out by seed companies in the field of varietal research, they are looking for new varieties that are more resistant to viruses.
According to GfK | YouGov, peppers are bought by 64% of Italian households. The trend in purchasing behaviour in Italy has been very positive over the last twelve months to September 2024. The summer months, especially from June to September, are the best for buying peppers.
Netherlands and Belgium: Shrinking acreage for yellow peppers
The local pepper season is coming to an end, with more and more growers having started their crop rotation. There is no expectation of benefiting from a possible pepper shortage due to recent storms in Spain. Unlike tomatoes and cucumbers, there is no light-assisted pepper cultivation on a commercial scale. Although there have been some studies in this area, the results have not yet reached a point where practical growers are adopting this approach.
As with many other greenhouse crops, production this spring was delayed due to overcast weather. This backlog has not been caught up. The cultivation of sweet pointed peppers, however, is on the rise.
For yellow peppers, a shrinking acreage is being reported. Prices for these peppers were higher due to reduced supply. The pepper industry is also experiencing consolidation, with larger growers expanding while smaller ones are exiting the market.
The pepper industry is still seeking a solution to the root issues growers are facing. One potential solution lies in the transition to organic substrates instead of growing on rock wool. Fusarium oxysporum seems to be the primary culprit behind these problems. With increased attention to soil life, growers hope to gain better control over the issue.
Additionally, significant investments have been made in water quality management, and due to the ongoing energy crisis, extra thermal screens have been installed. From 2025 onwards, Dutch growers will also face additional energy levies.
Germany: Supply comes from many countries
Yellow peppers currently come mainly from the Netherlands and Spain, although German and Belgian product is also offered here and there. Spanish merchandise is slightly cheaper than Dutch product in terms of price. In the green segment, Spain and the Netherlands are flanked by Turkey, although local product can also be found in southern Germany. Again, Spain is price-wise interesting, although the difference with the Netherlands is again small. Within the red segment, the Netherlands and Spain also lead the way, flanked by Turkey and Belgium. Here and there, domestic as well as Polish product also pops up. The latter is significantly cheaper than the rest of the range.
Israel: Lazy start, with more supply coming in a week
The bell pepper season in Israel is off to a "lazy start" but looks promising. The autumn weather in Israel was a challenge for bell pepper growers last season and in previous years. A large exporter notes: "The weather is quite good and for sure better than previous seasons for this time of the year, although we see a somewhat lazy start in production, the volumes are there and will start increasing in the coming weeks. The majority of production is Red blocky peppers, accompanied by Yellow and Orange in smaller scale, and with correlation to market requirements."
Demand in European markets is also increasing following the heavy rain and recent damage in Spain. An Israeli exporter also noted, that pricing on Spanish peppers has lowered, perhaps due to quality issues after the rain. However, they expect pricing in Europe for peppers to increase again. The slow start in harvesting from Israel will pick up, and supply will increase to normal levels in the next week.
Spain: High and fluent demand for Spanish bell peppers
Just a few days ago, a storm of rain and hail that left up to 80 mm of precipitation in just 20 minutes that hit El Ejido, causing losses of varying magnitudes in thousands of hectares. It is estimated that some 4,500 hectares of crops were damaged by the hail, which knocked down some 60 hectares of greenhouses.
And although peppers, especially the California type, are the product that has recorded the greatest losses, supply at this point in the campaign is developing normally. In fact, Spain has practically taken the reins of the European campaign for California peppers. "Countries such as Poland or the Czech Republic have already stopped producing merchandise and as far as we know, the Netherlands continues to produce but more for local consumption, so in Almería we have started in earnest," explains an operator in the sector, "with a high and fluid demand."
"Just a few weeks ago, supermarket chains changed many programs that previously included Lamuyo to California, by increasing production volumes and having more competitive prices, which has lowered Lamuyo prices considerably, as they reached over 3 euros per kilo."
South Africa: Sunburn risk and hail on peppers remain high
Bellpeppers are always at risk of sunburn and this year is no different. Severe hail over open land bellpepper lands will also reduce the availability of green peppers.
"Bell peppers is a tough market. You are not getting a return on the cost of growing it," says a Limpopo vegetable farmer. "Peppers in net houses are extremely expensive to grow and when prices are as marginal as they've been since Covid, it's very difficult to survive. Inside a net house it's the kind of irrigation and the way of trellising the fruit that make it so expensive. You look after those plant for eight months, all through winter, before it's harvested. And with current temperatures around 40C, peppers under 20% shade nets are burned to smithereens."
They're writing off more peppers to sunburn than they are currently sending to market, he says. Consumer demand is also slack, fewer consumers can afford yellow and red peppers. Less peppers have been planted as a result.
The pepper rice saw an increase to R14.87 (0.78 euro) per kg this week, according to AMT agricultural market analysts, which was driven by a 43% rise in green pepper prices (R11.91 or 0.6 euro) while the prices of yellow and red pepper have dropped. A downward trend is expected on pepper prices throughout November.
Morocco: Pepper plantings increased significantly in Souss Massa region
Volumes of bell peppers have increased significantly in the Souss Massa region of Morocco. Many tomato growers have replaced part or all of their acreage with peppers due to the difficulties of tomato production. The varieties produced in the region are quite diverse, such as square peppers, kapia, kasia and others. One grower says, "yield and quality are good despite the presence of thrips and high temperatures currently in the region."
On the export front, a report from East Fruit reveals significant volumes exported from Morocco between January and August, amounting to 150 thousand tonnes, 20% more than the previous season. One grower says, "there's great demand from European markets, especially the UK, Netherlands and France, and from West African countries." The same source adds that the increase in demand mainly concerns red sweet peppers, whose export volumes and prices exceed those of yellow peppers.
Moroccan exporters are observing the situation in Valencia. Demand for Moroccan peppers could skyrocket if flood damage impacts the peppers sector in Spain.
North America: Southeast hurricanes strengthen pepper demand
Production began at the end of October on field bell peppers in Coachella, California. Supply is steady on green bell peppers and is expected to stay in this region until December. Red pepper production in Coachella has started this week and will go through January.
As for demand, it's strong, especially following the hurricanes that hit the southeast earlier this month. That demand is also anticipated to stay strong with Thanksgiving and the holiday season ahead. Processing pepper demand is also expected to be strong.
All of this is also leaving pricing slightly higher than last year's pricing at this time. That said, there's still availability from regions that normally aren't producing at this time including Northern California.
In Mexico, coloured bell peppers are seeing a small gap in supply given the main growing area of Sinaloa doesn't start until mid-December. Right now, growing is winding down in Nayarit and Jalisco. Mexican peppers are also seeing strong demand and in fact, the year generally has seen good demand. As for pricing, November markets become active because of the lack of supply.
Paraguay: Starts exporting peppers to Argentina
Paraguay has begun exporting peppers to their neighbouring country of Argentina. The shipment of 15,000 kilos is the result of negotiations between the Ministry of Agriculture, producers, and Argentine importers.
Because of Argentina's demand for large peppers, a special classification must be made before exporting. To date, more than 15 shipments have been exported to several Argentine provinces, including Santa Fe, Córdoba, Mendoza and Buenos Aires. According to Karen Leguizamón, of the Association of Fruit and Vegetable Importers and Traders, these shipments have generated more than 2,200 million Guarani for Caaguazú producers.