economic aspect of peach growing in the mediterranean area

MEDIT W 2/ 95
ECONOMIC ASPECT
OF PEACH GROWING
IN THE MEDITERRANEAN AREA
FRANCO ALVISI - CLAUDIO MALAGOLI - CARLO PIRAZZOLIDOMENICO REGAZZI (*)
Production
IAbstract
The greatest part of world production of
peaches and of nectarines originates in the
mediterranean countries (about 50%). In
particular the ave rage yearly crop has increased from 3,4 millions of tons to 5 millions of tons, in the period 1983-92 (figure
1) . It must be noted that the production
may vary even considerably, from year to
year according to the seasons: in fact spring
frosts are particularly dangerous.
About 90% of peaches and nectarines production of the mediterranean area is made
in European countries, in particular in those
belonging to EU. Indeed the four most important countries (Ita ly, Greece, Spain , and
France) belong to EU (figure 2).
Crops of the northern African countries,
which are still rather scarce, tend to become bigger.
The increase of the production of Asian
countries is particularly relevant in terms
of percentage apart from Ciprus, w hose
crop has remained constant.
Among the mediterra nean countries, Italy
(whose crop is 1,6-1 ,7 millions of tons) is
the main producer and it contributes to the
total production of the area with 37% of
the crop .
More than 50% of Italian production is concentrated in northern regions, 10% in the
central ones and the remaining part in the
South and in the islands. In particular four
regions produce 80% of Italian crop: in the
order Emilia-Romagna, Campania, Piemonte and Veneto.
At the moment Greece is the second producer with about 1,1 million of tons in
1992. In the last ten years its production
has doubled (in the early eighties in fact
the production was less than 500 thousands of tons). The region of Macedonia ,
in which 95% of total G reek production is
concentrated , is the main producer. Peloponnesos and Thessaly are the other peach
production areas.
Spain is the third producer of peaches (average production 750 thousands of tons).
The production of this country is mainly
concentrated in Catalonia and in Ebro valley (Tarragona, Lerida , Aragon and Rioja)
w here 50% of the total crop is made. The
About 90% of peach and nectarines production of the Mediterranean area is made in European
countries, particularly in Italy (33%), Greece (25%), Spain (17%) and France (12%). The production of
African countries is rather scarse; nonetheless the rhythm of increase is remarkable and in the
period 1983-1992 the production has increased by more than 50%.
The greatest part of production is assigned to fresh market and it also feeds an important trade
towards northern and central Europe countries. Peaches are assigned to industry in large quantities
above all in Greece and in Spain.
As far as production costs are concerned the analysis we have made has highlighted important
differences related to ripening seasons and to the country.
IResume
Presque 90% de la productioll de pecbes et de lIectarilles de la regioll mediterralleelllle se fait dalls les
pays europeellS, 1I0tammellt ell Italie (33%), ell Grece (25%), ell Espaglle (17%) et ell Frallce (12%).
Dans le pays africaills la productioll est assez faible, mais elle telld a augmellter remarquablemellt;
dans la periode 1983-1992 elle a augme,lIe de plus de 50%.
La plupart de la production est utilisee pour la cOlIsormllatioll a {'etat frais et pour {'exportatioll vers
les pays de l'Europe du nord et centrale. Surtout ell Grece et ell Espaglle, les pecbes SOllt utilisees ell
grandes quantites par l'industrie.
Quant aux couts de production, {'analyse que nous avons faite a fait ressortir des differences importalltes vis-a-vis des saisons de maturatioll et des pays.
(') Istituto di Eslimo rurale e Com ahilitil . University of
Bologna.
35
MEDIT W 2/ 95
o ther productio n a reas are MUI-cia and Valencia (30%) and Andalusia and Estremadura (20%).
Among the other producers of medite rranean area , France has a basically stead y
crop of abou t 500 tho usands of to ns per
yea r. French productio n is concentrated in
southern regions: particularly in Aquitain,
Rhone-Alpes and Provence.
The production of African countries is rather scarce, none of the m p roduces mo re
than 60 tho usands o f tons. None the less the
millions t.
.',
crops are rathe r scarce and they reach a
conside rable level o nly in Siria and in Israel.
The greatest part of production is made of
peaches (90%). Nectarines are cultivated
mainly in two countries, Italy and France,
where this production represents one third
of to tal peach total production .
Italy peach production is made of early
cultivars ("Springcrest", "Cardinal", Dixired", "Corone t", e tc.) , 33% of mid-season
cultivars (Redhaven , "Glohaven ", etc.), 2025% of late-cultiva rs ("Suncrest", "Cresthaven" , e tc.). The remaining 15% is made of
peaches for processing.
In Spain 90-95% of total production is
made o f peaches . They are mainly produced by local cultivars (about 60%) ,
among which the most important are "Bie nvenido " and "Maruja ".
In Greece the p roductio n of peaches fo r
industry is rather impo rtant. In fact they
represent more than 40% of to tal production. Peaches for fresh market are 55%,
while nectarines are o nly 5% of the to tal
production.
Also in France the majority is made of
peaches 05%), while nectarines represent
abou t o ne quarter of the production.
rythm of increase is remarcable and in the
pe riod 1983-92 the production has increased of more than 50%. Peach pla nts
are in Libya (Tripolitania and Cyrenaica) ,
in northe rn Tunisia, in the Algeria regio n
and in Morocco (Marrakech , Fez and
Meknes).
In the Asian area, the only country producing remarcable quantities is Turkey,
whose production is 350 tho usands tons
per yea r, mo reover it tends to increase
rather quickly. In the o ther Asian countries
.---.-- --- _··_-_ ..·_--_··_---------_·_·--·-1
I.
1
j~~-;-:
Figure 1 . Evolution
of peaches and
nectarines
production in the
MedUerranean area.
Source: FAO.
i
o l_. __.........
1983 1984 1985 1986 1987 1988.1989 1990 1991 1992
~~ Europe
..
_..._._--_...
Africa . J Asia
_.
-_.
__ ._-
--.
1~------------------------------------------~
Figure 2 . Peaches and nectarines production in the most important
country of the MedUerranean area. Source: EUROSTAT.
France
Spain
mIll. t.
1 . 4 0 0 r - - - - - r - - -- --
mM!. t
1.400
1.200
· ..
1.200
1.000
·
1.000
800
..
·
--r--------,
. . . . . . . . ........._ _ _ _ _ _ _4 . . • . . . • .
- - .. - - -
PNChea
..
400
200
0
11188
1.
oL-----------_______
111811
1980
11181
1Q11O
11188
Greece
Italy
,.
~
m•. t.
mIll. t
1.400
l.400r------,--------,-----,
1.200
1.200
1.000
1.000
_. - - - - - -
800
lIDO
•... . ...
400
.. .. . .. .
- - - - - - -
~----------~
....... .
peach ..
eoo
200
0
11188
2
36
..
188e
1lIII0
11181
1.
200· ········· · ··~.· . . . . . .
11180
1l1li1
1l1li2
ME D IT W
2/95
Disposal and trade
The grea test p art of the p eaches w hich a re
cultiva ted in the mediterranean area is assigned to fresh ma rket. Neverthe less in
Greece and in Sp a in the qu antities of
peaches assigne d to industrial process are
respectively 40% and 20% of total p rod uctio n . In the o the r countries the qu antity
of peaches assigned to industry never
reaches 10% of yea r p roductio n.
A big p a rt of medite rran ean area 's p eaches is sold in northe rn and central Euro p e
countries . The exp o rted q uantities , evaluated in 500 tho usands to ns pe r yea r, are
mainly fe d by Italy and Greece .
In partic ular, Italian expo rte d peaches are
380 tho usands and they are m ainly fo rwarded to Ge rmany (a bout 50%), United
Kingdom (15%) , and to France (8-10%).
Trade ca mpa ign begins towards the e nd of
May w ith early-cultivars coming from
southern areas and it continues untill September. In July and in Au gust trade is more
inte nse .
The exporte d q uantity of Greek peaches is
100 tho usa nds to ns p e r yea r and they are
sent to no rthe rn and centra l Europ e countries be lo nging to EEC. Exp o rt towards
Austria , Swede n and Arabian. countries are
importa nt too .
France a nd Spain too, even tho ugh they
expo rt less peach es than Italy and Greece ,
fee d trade towards no rthe rn and central
Europ e countries . The quantities they exp o rt are less than 20-30 tho usands to n s pe r
year.
Figure 3 - Structure
ofproduction cost.
Source: our data.
Variable expenses:
Fertilizer,chemicals
fuel , hired labor,
irrigation water
Fixed expenses:
General farm
overhead,taxes and
insurance and interest
-+-
=
Figure 4 - Production
cost per bectare:
early peacbes
"Maycrest" (1993).
Source: our data.
Cash
expenses
Figure 5 - Production
cost per ktlogram:
early peacbes
"Maycrest': Source:
our data.
Other costs:
Cash
expenses
I-+-
Capital
replacement
I-+-
Operating
capital,nonland
capital , land
Total
production
cost
3L-____________________________________________
~
Production costs
The exam of p eaches productio n costs of
the medite rranean area counties involves
France, Italy and Sp ain. We h ave conside re d both early peaches ("Maycrest") and
mid-season peaches and late nectarines ("Stark Redgold ").
Costs have been calculate d accord ing to
the me tho d expla ine d in figure 3 .
Maycrest's average yearly cost p er hectar
va ries from 12-13 tho usands do llars in Italy and Spain , to 18 tho usands dollars in
France. If we conside r an ave rage yea r p roductio n pe r hectar of 15 to ns of peaches ,
the cost per kilogram is respectively 0,803
d o llars in Italy, 0,899 in Sp ain and 1,207
in France (figures 4 a nd 5).
Produ ction cost per hectar of mid-season
p eaches such as "Flawo rcrest" is 15 tho usands d o llars in Italy and 18 tho usands do llars in France . If the average yea r productio n is 25 to ns pe r h ectar the cost pe r Kilogram is respectively 0,598 d ollars in Ita-
(000) $/Ha
• Cash expenses
4~
Capital replacement
______________________
~
Other costs
______________
~
5L-______________________________________
~
37
MED IT W 2/ 95
(000) $/Ha
20
15
10
5
.. ITAI.Y
05 -
O ~-------------------~----'----'--- ---------~
FRANCE
ITALY
,I
°
/
I
4 ----.-----.---.- --'----...--.- ... ---
, 23
23,4 23,8 24,2 24,6
25
25,4 25,8 26,2 26,6
27
T/HA
Figure 6 - Production cost per hectare: mid-season peaches "Flaworcrest"
(1993). Source: our data.
(000) $/Ha
r--.---.-·.--------.--.--.-.--.-.-- --.---.-..-------- ------- -- -------
18 /
16
Figure 7 - Production cost per kilogram: mid-season peaches "Flaworcrest"
(1993). Source: our data.
r---..---.------.-----$/Kg
o~~:
14
12
10
8
2
o
0,5 '-
i •. ·
..
ITALY
/
0,45
'0'.- -------~-
,------.-.--.
.
----.-.--.-.
.
.
-.
.
L_________ ._______. _____.....__ .L:' __ ...._. ____.__. .
ITALY
FRANCE
-~.-- - ---.--.----.--J
•
Cash expenses i;-j Capital replacement
ly and 0,718 in France (figures 6 and 7) .
The productio n cost per hectar of late-nectarines such as "Stark Redgold" is abo ut 14
tho usands dollars in Italy and about 16
tho usands do llars in France. The cost pe r
Kilogram, evaluating an average productio n pe r hectar of 27 to ns of fruits, is 0,530
dollars in Italy and 0,591 in France
(figures 8 and 9).
Conclusions
In the mediterranean area peach productio n is increasing. 85% of productio n is 10 -
0,4
__L -_ _
25,4 25,8 26,2 26,6
L-~~_L~~
25
Other costs
Figure 8 - Production cost per hectare: late nectarines "Stark Redgold"
(1993). Source: our data.
38
.....
0,55 --
61
4
/
FRANCEl
~_L~~
27
__
27,4 27,8 28,2 28,6
L_~_ __ _~~_ _L_L-~
29
T/HA
Figure 9 - Production cost per kilogram: late nectarines "Stark Redgold"
(1993). Source: our data.
cated in Euro pean countries, particularly
in Italy (33%) , Greece (2 5%) , Spain (1 7%)
and France (1 2%).
The greates part of p roductio n is assigned
to fresh market and it also feeds an impo rta nt trade towards no rthe rn and central Europe countries.
Peaches are assigned to industry in large
q uantities above all in Greece and in Spain.
As far as produ ctio n costs are concerned
the analysis we have made has highlight- .
ed impo rtant diffe re nces re lated to ripe ning seasons and to the country. In particula r, the to tal cost pe r hectar of ea rlypeaches varies from 12 to 18 tho usands
dollars, while the cost pe r kilogram va ries
from 0,8 to 1,2 dollars.
Mid-season peaches productio n va ries
fro m 15 to 18 tho usands dollars per hectar and the unit cost va ries from 0,598 to
0,718 dollars pe r kilogram.
Finally late-nectarines cost per hectar varies from 14 to 16 tho usands do llars pe r
hectar which correspo nd to 0,530 to 0,591
•
dollars pe r kilogram .
(.) Paper presented at the XXIVth Inte rnatio nal Ho rticul tural Congress, 21-27 august 1994 , Kyoto, Japan.