Market Update: Peppers June 2024
20 June 2024

The UK market for canned, pouched, and IQF peppers in the food manufacturing industry is influenced by various international factors. Spain remains a key supplier, but with higher costs due to weather and wage increases.

Turkey and Egypt provide more affordable alternatives with stable quality, while China offers the lowest price but faces logistical challenges. Monitoring weather patterns, labour costs, and logistics will be crucial for making informed purchasing decisions in 2024.

Spain

Over the past few years, the prices of bell peppers in Spain have been on an upward trajectory due to consecutive years of poor weather. The compounded effects of soaring temperatures and dry conditions have led to difficulties in stock carryover and availability. However, the 2024/25 campaign shows signs of improvement with milder temperatures and more stable weather conditions, which may help stabilize prices.

However, an increase in the minimum wage has significantly impacted the cost of manually harvesting peppers, pushing raw material prices up by approximately 10% year-on-year. Processing costs, including energy, have stabilized, further highlighting the influence of raw material costs. If favourable weather conditions persist, there may be a reduction in market prices next year.

Turkey and Egypt

Peppers from Turkey and Egypt are offered at more competitive prices, averaging around 50% below Spanish peppers. Despite being cheaper, the prices in these regions have also increased by about 10% year-on-year. These origins present a viable alternative for budget-conscious buyers while maintaining acceptable quality standards.

China

Chinese peppers remain the most affordable option at the origin. Increased planting has led to abundant raw material availability, allowing prices to decrease by approximately 15%.

Supply Chain and Logistics

The transportation routes from Spain to the UK are well-established, ensuring reliable supply chains despite occasional weather-related disruptions. Turkey and Egypt provide competitive alternatives, benefiting from relatively stable logistics networks to the UK. China’s primary challenge lies in the logistics, with fluctuating shipping costs and potential delays affecting overall supply chain stability.

Can Case Origin
VEGE161 Diced Roasted Red Peppers 10mm 6 x 2.5kg Spain
NEW Diced Roasted Red Peppers 10mm 6 x 3kg Turkey
VEGE587 Roasted Red Peppers 6 x 2.5kg Spain
NEW Roasted Red Peppers 6 x 3kg Turkey
VPRSC15 Pimiento Sliced Red Roasted Peppers 6 x 2.5kg Spain
VPYSC15 Pimiento Sliced Yellow Roasted Peppers 6 x 2.5kg Spain
VEGE590 Roasted Yellow Peppers 6 x 2.5kg Spain
Pouch
NEW Diced Roasted Red Peppers 10mm 6 x 2.5kg Spain
NEW Roasted Red Peppers 6 x 2.5kg Spain
IQF
NEW IQF Red Diced Peppers 10mm 10kg Turkey
65-180274A IQF Red Diced Peppers 10mm 10kg Spain
65-180477 IQF Red Sliced Peppers 7mm 10kg Spain
65-180746 IQF Red Diced Peppers 20mm 10kg Spain
65-181111 IQF Red and Green Diced Peppers 10mm 10kg Spain
65-180690 IQF Green Sliced Peppers 6mm 10kg Spain
65-180691 IQF Green Diced Peppers 20mm 10kg Spain

 

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