In the Spanish city of Granada, autumn temperatures were warmer than in the previous year and this advanced the Cherry tomato harvest by two to three weeks, which consequently resulted in 20% larger production volumes.
"Due to the larger volumes and to a longer Dutch and Belgian tomato season, the beginning of the campaign was tough; prices only started improving in December, reaching similar levels to last year; satisfactory, but only barely profitable. Furthermore, the lack of moisture resulted in a good quality produce," explains Fulgencio Spa, manager and owner of the company Fulgencio Spa, S.L.
Based in Varchuna, Granada, Fulgencio Spa S.L. started planting Cherry tomatoes in the mid-nineties motivated by its lands' favourable microclimates. The first step was to complete the annual production cycle by planting in various altitudes, of up to 1,000 metres above sea level, making it possible to supply Cherry tomatoes both in the winter and summer. These are also grown in Morocco, and thus Cherry tomatoes of both origins are available to its European clients.
Varietal innovation driven by clients
The company grows two varieties of round Cherry tomatoes, one variety of vine tomatoes and two of Pear tomatoes. Its latest market test is being conducted with the Tomachoc, of the seed company Top Seed, which is doing rather well.
"Vine and round Cherry tomatoes have leading varieties in the market, which is still not the case with the Pear Cherry," affirms Fulgencio. "Flavour is the most important aspect in the search for new varieties."
"We are very demanding in varietal aspects, and thus we recommend growers to stick to our programs. Introducing new varieties into the market is not an easy task, as many of the tests we conduct, and which we consider interesting, end up failing. The pace of innovation ultimately depends on the clients, even though seed companies are doing a great marketing job for the promotion of their varieties."
European clients seek to differentiate themselves with Cherry tomatoes
"European clients feel the need to differentiate themselves from their competitors, and speciality tomatoes are a good option. The key is in getting clients to appreciate the value added, as starting from the seed itself, the production costs for a speciality tomato are higher. Sales are also limited and the yield is lower."
Fulgencio is convinced that to be able compete with a good product it is essential to find the optimal harvest time. "Quality demands are stricter than with conventional products. Second class Cherry tomatoes cannot be sold," he stated.
In any case, Fulgencio stresses that "the Cherry tomato sector's growth must remain progressive in order for the product to continue being a speciality."
Spanish consumers still unfamiliar with speciality tomatoes.
Regarding sales channels, Fulgencio prefers to do business with clients offering him continuity, which he finds in both supermarket chains and small clients. "There are many interesting small sales channels for Cherry tomatoes besides supermarkets."
Markets such as Scandinavia, the UK, the Netherlands or Germany, where consumption levels have significantly increased, have very clear preferences when it comes to the consumption of speciality varieties; customers look for them and they appreciate the difference, and this is still not the case in Spain, where growth is consequently slower.
With its brands MARINA and TOMATITO, the company has expanded its range of packaging formats in the past five years, although the 250 gram containers are still the most popular.
If supply levels are higher, prices drop
"We compete fiercely with the Netherlands in the early stages of the autumn campaign and in the spring, while Morocco has similar production cycles and has the second largest volumes available during the winter," affirms Fulgencio. "If supply levels are higher, prices naturally drop."
Additionally, Italy also competes with Spain with certain varieties, although most of its production is marketed domestically and only exported in case of oversupply.
For more information:
Fulgencio Spa
Fulgencio Spa S.L.
Avda. de las Palmeras,9
Carchuna-Motril, Granada. Spain
T: +34 958623136
[email protected]
www.fsagro.com
