The average price of EU pears rose by 3.2% to EUR 1,333/MT in the last six months (Jul ‘21-Dec ‘21), compared to the previous six-month average (Jan ‘21-Jun ‘21) following a record low EU production forecast. EU pear production is forecast to decline by 0.65m tonnes (-27% year-on-year (y-o-y)) to 1.73m tonnes for the 2021/22 marketing year (MY), according to the United States Department of Agriculture (USDA). Adverse weather conditions hit key producing countries in the EU throughout the growing period, thus causing a decline in total EU pear production. In addition, The World Apple and Pear Association (WAPA), reported that EU pear stocks on December 1st stood at 654,484 tonnes, a decline of 26.9% y-o-y. A combination of these factors has exerted an upward momentum on pear prices.
Moreover, a combination of rising fertiliser, packaging, transportation and energy costs continue to act as bullish price drivers. Crude oil and natural gas prices continue to remain well above 2020 levels, which is driving the cost of energy, fertilisers, and transportation up. Rising costs are concerning for producers, and in order to prevent losses, costs are likely to be passed along the value chain to consumers. High input costs are expected to continue into Q1 2022, putting additional pressure on EU pear prices.
In the December 2021 pear market outlook, all factors impacting the market have been reviewed. The report analyses price movements in three key markets; the EU, China, and the US, analysing various factors which are driving prices. Mintec’s market outlooks schedule provides insights on factors shaping the market dynamics of various commodities, providing the opportunity for market participants to stay ahead of factors that will impact procurement decisions. Please visit our Mintec Analytics platform to find out more.