The Mintec price of Spanish broccoli doubled to EUR 2/kg in the three months to 7th April. The price rise can be largely attributed to supply tightness.
Spain, Europe’s largest broccoli producer, exports between 450,000-550,000 tonnes of the vegetable on average each crop year. Spain’s broccoli exports equate to more than 80% of Spain’s total production on average each year. For the 2020/21 marketing year, exportable supplies are projected to be tighter due to the occurrence of storm Filomena which occurred in January 2021.
50% of Spanish broccoli production comes from the Region of Murcia, followed by the Ribera del Ebro and Extremadura. Storm Filomena occurred during the second week of January 2021 and is reported to be the worst snowstorm to hit Spain in the last 50 years. The storm impacted key growing regions across Spain, as well as logistics. The impact of the storm on broccoli prices had knock on effects across most European broccoli markets, with prices in Germany increasing by over a euro to EUR 3/kg, since 6th January.
The exact impact of the storm on Spanish broccoli production is currently unknown and is likely to become more evident in the coming months, however there is consensus amongst market participants that production is likely to be significantly lower year-on-year. Accordingly, the Mintec price of Spanish broccoli is projected to remain firm over the next three months.