Strawberries - downward pressure on prices on the Polish market
This year's domestic strawberry season is not starting off as desired for the producers. Pressure on the prices of home-grown strawberries became evident very quickly. This pressure is as strong as it is effective. Yet the trade in Polish strawberries is still at a very early stage and the supply of these fruits is relatively low.
However, it has already increased to such an extent that this growth has turned out to be supportive of the tendency to weaken wholesale prices of Polish strawberries (wholesale, because as is often the case, the situation at the retail level is not as dynamic). Currently, wholesale prices of Polish strawberries are usually between 14.00 and 17.00 PLN per kilo, which means that they are already cheaper than a year ago and two years ago - by 31 percent and 11 percent respectively. The difference to last year is huge - currently a strawberry costs almost a third less than last year! And yet, compared to that season, production costs have risen immeasurably.
Why is there so much pressure on the prices of domestic strawberries, even though their supply remains limited? On the one hand, this is undoubtedly due to imports, especially of strawberries from Greece, which have been relatively cheap (the supply of Spanish strawberries is already dwindling and their prices should rise). But imports are not the only "culprit".
The problem is weaker consumer demand. Strawberry prices, although lower than last year's, are still quite high from the point of view of retail buyers, where, as we wrote, the differences are not so significant. Consequently, consumers (faced with inflation) are reducing their purchases in segments that do not supply essential and basic products. Strawberries fall victim to such decisions. In addition, wholesale buyers, aware of this trend undermining the current supply, are using it as a kind of 'bogeyman' towards producers and are trying to influence a reduction in transaction prices.
The question is, however, what will happen to domestic production of strawberries - after all, one of the most popular seasonal fruits - if this season's campaign proves unprofitable. We can already see a downward trend here - in 2020, the area of strawberry crops, according to ARiMR data, amounted to 37,748 hectares, and in 2021, it will be 35,585 hectares (a decrease of 6 percent).