"We are in the middle of the French pepper season," explains Alexandre Picault, director of Kultive. For several years now, the company has been working to develop the French pepper sector. It is not an easy challenge, but it can be achieved if all the players in the sector get involved.
Growing production areas
Although the season has taken longer to start, there are some fine weeks ahead in terms of volumes. "We started the season as usual at the end of February/beginning of March. The start of the season has been slower and quieter than usual, but we are catching up and are now entering the big production weeks, particularly for red peppers. We have also increased our production area by 1.5 hectares, and will reach 11 to 12 hectares next year. We continue to encourage growers to switch to crops other than cucumbers, but distribution also has to get on board.
A more tangible price war, detrimental to the French origin
While some retailers are committed to promoting the French origin, others simply give priority to price. "This year, we feel that French products are being rejected. There is a bigger battle on price, and some chains have slowed down the opening of new lines for French products, which is having a big impact on our sales. Some of our clients have asked us to get our red pepper prices in line with import prices, down to 2€ [2.29 USD], which would mean a 25% drop in the purchase price compared with the average for other years. This is not a viable scenario for our producers."
The retail strategy for the French origin lacks stability
Faced with this stiff competition from imported products, Alexandre Picault and the Kultive sales team are fighting every day to ensure that French peppers hold their ground. "This year, sales are much more balanced between our clients, whereas last year we had very large orders from certain chains. If we cannot place a product somewhere, we try to sell it elsewhere. Some clients are cautious about buying French products too quickly, for fear of running into supply gaps. However, we have enough goods today and for the months to come to meet the demand from retailers who want to promote French products at their fair production price. Demand has also picked up since May 8th, with the bank holidays having a beneficial impact on consumption."
But from one year to the next, consumers' views on the origin of French products change, which makes it difficult to develop a long-term strategy.
An average price that has not compensated for the loss of volume
Despite this pressure, Kultive has managed to maintain the average price of peppers at an acceptable level for producers, but the company remains vigilant. "Unfortunately, although we have managed to maintain an acceptable price, it does not compensate for the drop in production, which is 15% lower than last year. Additionally, it is always when large volumes arrive on the market that the risk is highest. We need to succeed in finding the retailers who will be able to promote the French product in the right way at the height of the season, but we need to remain very vigilant. It is only by guaranteeing good value to producers that we will be able to develop the pepper sector."
A collective effort essential to the development of the French pepper sector
For Alexandre Picault, the only way to develop a French supply of peppers is to adopt a coherent, collective approach. "The general trend is towards the development of greenhouse vegetable production. If we want to move away from this tomato-cucumber duo and diversify our range, we - producers, marketers and distributors - need to work together and take a longer-term view. Cucumbers are technically very difficult to grow. If we want to capitalize on the development of this product, we need our clients to support us. We are open to discussion, and we will be listening carefully to see what we can come up with in terms of price structures. These need to be attractive for everyone and linear, so that we can continue to develop this French pepper sector."
For more information:
Alexandre Picault
Kultive S.A.S.
190 allée du bois vert
45640 Sandillon, France
Phone: +33(0)2 38 49 33 49
[email protected]
www.kultive.fr