Mintec Spanish plum prices fell by 45% between the 1st May and 3rd July 2020 to EUR 1,200/MT due to lower demand from Brazil.
Brazilian buyers have demanded Spanish sellers to use methyl bromide to protect the fruit from pests. However, the pesticide requested is currently banned as per European regulation. As a result, Spanish plums have been prohibited from reaching their key export destination for this marketing year.
The 25% y-o-y Spanish plum production decline in 2020 has had a limited effect in halting the bearish trend, with over 1,000 containers left without a commercial outlet. However, the bearish trend could be short-lived due to the geopolitical conflict between India and China.
The ongoing India-China conflict has led Indian consumers to boycott Chinese plums, among other imported products. This, in turn, has increased Spanish plums’ attractiveness in the Indian market. Spanish plums have been exported to India for several years, although it may not always have been India’s preferred choice due to its cost. However, the conflict with China and the good maritime connections between the ports of Valencia, Barcelona and Algeciras and the port of Mumbai in India, is expected to increase the demand for Spanish plums.