EU: European fruit and vegetable sector faces a very uncertain year

(Illustration: AI)

According to Stefano Lo Casto, owner and sales director of Italian Lo Casto Srl, the European fruit and vegetable sector is facing a very uncertain year, as both production and trade are strongly affected by extreme weather events and increasingly unpredictable market movements. He says that although there was some improvement in December 2025 compared to the previous month, the peaks in demand and brisk turnover typical of the Christmas period were not achieved. The first days of the new year were accompanied by a severe frost wave that caused significant production losses in Spain and Sicily, resulting in a serious supply shortage.

The sudden shortage of goods triggered an immediate price increase, pushing prices well above the seasonal average

Although the situation later stabilized somewhat, many traditional wholesale markets slowed down or temporarily closed, while large supermarket chains continued to try to maintain supply, but had to do so in the face of extremely volatile prices and intermittent availability of stocks. The temporary disappearance of some products also directly affected consumer behavior: buyers became more sensitive to prices and less willing to adapt quickly to seasonal changes. This further complicates the work of traders, especially those who create links between several regions, such as those connecting producers in Spain, France or Sicily with Italian and other European markets. While logistical flexibility and rapid reorganisation of goods flows are important advantages, they are not always enough to offset falling production and rising costs.

The outlook is both bleak and promising

According to Lo Casto, greater attention to domestic (Italian) products and increased support for producers could help stabilize the market and reduce the distortions that have had a negative impact on the entire supply chain. One of the biggest challenges for 2026, he says, will be for players to be able to plan ahead with greater certainty, and flexibility and a deeper understanding of the market will play a crucial role in retaining customers and ensuring the sustainability of businesses.

FruitVeb