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OVERVIEW GLOBAL POMEGRANATE MARKET

The pomegranate market seems to be in good shape. The demand for the fruit is on the rise. Israel benefited from an empty European market, Spanish growers are investing in expanding their acreage and the Italian season recorded an earlier start. The Turkish domestic market still has room for growth, but exports have risen sharply in recent years. Egypt is also active on the world stage and exports the fruit all over the world. In India, prices are high because the volume was disappointing this year. In neighbouring China, pomegranates are also becoming more and more popular and on the other side of the ocean, the higher yields are expected to compensate for the declining acreage. In the US they are also seeing an increasing demand for pomegranates, although the acreage is declining, mainly due to water shortages.

India is struggling with shortages
The export season of early pomegranates from the Maharashtra region should have started already, but the campaign did not go as it usually does. The beginning of the season has been difficult, so there is still only a small volume available; as a result, prices in the domestic market have increased and there is no fruit available for export. The colouring of the fruit was also not very attractive.

In any case, some companies have started processing the pomegranates to supply the seeds as a ready-to-eat product. There is also greater interest in this fruit from the horeca. A large part of the exports are intended for the Gulf region.



China: Higher revenue per hectare due to falling acreage
Tunisian pomegranates, which were introduced in the 80's, are still the ones preferred by retailers. Domestic cultivation can be found in the provinces of Sichuan, Henan and Yunnan.

However, in recent years, sales have been disappointing so growers have switched from pomegranates to the cultivation of other fruits. The average income in 2015 amounted to around 12,000 yuan (1,600 Euro) per hectare. The falling acreage should push the revenue per hectare up this year. The start of the season is very promising. The season kicked off in late August, delayed by two weeks because of the cold spring. The supply will be good for four months, during which there will be two major Chinese holidays. There are signs pointing to a growth in the popularity of pomegranates in the premium segment. Thus, pomegranates are also marketed in major cities, like Beijing.

Higher yield compensates for reduction in US acreage
The harvest of the Wonderful variety is expected to start at week 40. The first early varieties are already on the market and have been well received. This is partly due to the good demand from outside the US. The pomegranates are doing well thanks to their intense colour, high sugar levels and large sizes. The Wonderful accounts for 70% of the total harvest. The volume estimated is in line with that of previous years. A higher yield will compensate for the reduction in the acreage (-15%). The growers were able to adequately irrigate this year. Last year, there were water shortages. In total, 6.5 million boxes are expected. About 40% of the total fresh production is intended for export. The largest markets are South Korea, Canada, Taiwan, Japan and Brazil. Last year, the exporters saw demand from Brazil grow by 25%, and demand from Australia also grew. American producers had to adapt after Russia closed its borders. The country used to buy some 300,000 boxes, but this figure fell to zero after the introduction of the boycott.

Israel fills gap in European market
The first Israeli pomegranates were shipped to Europe in August and arrived to an empty market, which resulted in good incomes. The production from Spain and Turkey has made the market more competitive, but Israel has taken over a solid share of the market. The Wonderful, thanks to its long season, is a popular variety. The season lasts from October to March. Other varieties arrive in August and finish in September; therefore, they are not as popular. The quality and high Brix levels of these varieties don't make a difference. In an almost empty market, these varieties could, however, become more popular. Because of the aforementioned gap in the supply, the demand is still high. The price stands at around 5 Euro per 3.5 kilos, which is comparable with the level achieved last year. The demand is increasing every year and that is encouraging producers to expand their acreage. While the fruit's cultivation is possible anywhere in Israel, most plantations are located in the centre and south of the country.

Egypt exports to south and east
The North African country grows mainly two varieties: the Wonderful and the Baladi. The Wonderful season kicks off in mid-September and lasts until the end of October and early November. The skin of the Baladi is not as firm as that of the Wonderful and the appearance of the pomegranate is less attractive. An Egyptian exporter stresses, however, that the flavour is better. An additional advantage: the price is lower. This season, the quality is in line with that of previous years. The hot weather arrived earlier this year, so the quality has improved. Last year, the export of Wonderful pomegranates started in late September, but this year, thanks to the warm weather, they have been available since 15 September, thus allowing the country to meet the demand from Bangladesh more easily.

The export is mainly focused on the south and east. The biggest export markets are the Seychelles, Maldives and Mauritius, and further east, shipments go to Singapore, Malaysia, Hong Kong, Bangladesh and Russia. An exporter says that this season they will export around 700 tonnes of pomegranates.

Turkish consumption "too low"
Since 2010, the production of pomegranates has doubled in Adana's Seyhan region; however, more investments will be needed to achieve further growth, according to regional authorities. The value of exports increased from $ 9.4 million in 2009 to $ 108.4 million in 2014. This region accounts for 10 to 12.5 percent of the entire Turkish production, which stands at a total of 400,000 tonnes. According to authorities, the domestic per capita consumption, which amounts to 2.7 kilos, is too low and growers are in need of support.

Spanish production continues to grow
The prices in Spain show a downward trend. The reason for this lies in the harvest of the Mollar variety, which has reached larger volumes. The season is currently transitioning from the Smith and Acco to the Wonderful and Mollar varieties. Due to the lower temperatures recorded in the last few weeks and the greater contrast between day and night temperatures, the colouring of the pomegranates has been good.

In Valencia, there is plenty of interest among citrus growers in the cultivation of pomegranates in order to diversify their production. Over the last two years, production in the region has increased by between 10% and 20%. Traditionally, Valencia has not been a pomegranate cultivation area. The production mainly concentrates in the province of Alicante. In total, production in the main regions is expected to reach 60,000 tonnes. The most important variety is the Mollar, but the acreage devoted to red blush pomegranates, like the Wonderful and Smith, is expanding. While the production is growing every year, producers don't see that as a problem, because consumption is growing at the same pace, thanks to the promotional campaigns being carried out. Spaniards consume over 30% of their domestic production.

The Russian market used to be an important destination for Spanish pomegranates, accounting for 30% of the sales. Now the Russian market is inaccessible and exporters are shifting their focus to markets in the Far East, such as Singapore and Indonesia, as well as the Middle East. Moreover, exporters also see China as a potential market. There are of course also exports within Europe, to countries such as the United Kingdom, Ireland, the Netherlands, Germany and Italy.

Italian season starts earlier
Apulia and Sicily are the main growing areas for Italian pomegranates, and there is also a small acreage devoted to the crop in Calabria. The season has been underway for about two weeks. It kicked off 10 to 15 days earlier than usual. Growers started harvesting around 10 September and the season is expected to last until late October. The pomegranates then remain available until Christmas. In terms of prices, the season seems to be in line with last year's. The harvest of the Acco is now underway and the Wonderful will take over from week 39. Last year, the volume of pomegranates marketed grew by 70% to 80%.

The sales volume has increased sharply over the past two to three years. The main varieties are the Acco and Wonderful. The biggest competitors are Spain and Turkey. According to the Italians, that competition is especially in terms of volume, as the appearance of the Italian pomegranates is different, redder, with an attractive look. The acreage in Pulia stands at 168 hectares.

In recent days, the Mediterranean season has kicked off in the wholesale market of Bologna with fruit from Egypt, Turkey, Spain and Israel. In the off-season, there are also imports from Peru. The campaign begins with pomegranates from Egypt, which are then followed by Spain and Israel. In bulk, pomegranates cost 1.50 Euro per kilo, while packed they reach 1.80 Euro per kilo, with possible peaks of up to 2.50 Euro per kilo. The demand is still small, but it will increase in the coming months. The demand is especially good during winter. In recent years, consumption has increased considerably. In the past, it was perceived as a product for Christmas, but currently there is also a good demand outside of this holiday.

Israeli pomegranates are reaching similar prices to those recorded last season, while Spanish and Turkish pomegranates cost slightly more than last year, when prices were below average. Furthermore, this year the supply is smaller. In the coming days, the supply will increase and that should bring prices down. A drop of about 20% is expected.

Processed pomegranates are becoming increasingly popular. Thanks to this trend, pomegranates are reaching a greater number of consumers. Besides, there are also still many consumers who prefer eating the fruit in the traditional way.

Belgian market grows
Pomegranates are no longer a niche product in Belgium. The volume imported has doubled in five years, as reported by an importer. The product's popularity is on the rise due to the attention brought to it by health gurus and chefs. For the next few years, a light growth is expected in this market.

The pomegranates are available all year round and come from all over the world, from countries such as Spain, Turkey, Israel, Iran, Egypt, India, South Africa, Peru, Chile and the US. The Wonderful variety has been available on the Belgian market for ten years. Other varieties available include the Pom, Mollar, Baghwa, Hershkovitz, Acco, Hicaz and Emek.


Every week, FreshPlaza and AGF.nl publish an overview of the market situation of a product in a global context. With these articles we aim to provide a view of a global market shrinking due to globalisation. Next week, garlic will be in the spotlight.
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