Market Update: Gherkins June 2023
8 June 2023

Navigating the Gherkin Market in 2023/2024

The European gherkin market is facing numerous challenges as we navigate through 2023/2024. In this blog post, we’ll discuss the key issues and share some of the strategies being implemented to address these challenges.

Rising Costs Across the Board

One of the primary factors impacting the gherkin market is the significant rise in the minimum wage across various European countries. Germany, for instance, has seen a 14.8% increase (from €10.45 to €12.00), while other countries like Serbia and Bosnia and Herzegovina have also experienced notable increases. In some extreme cases, such as Turkey, the minimum wage has risen by an astounding 300%.

The rising labor costs are compounded by an increase in the price of fertilizers, another vital aspect of agricultural production, which has seen a surge of 20% compared to the previous year. These rising costs have put pressure on the suppliers, pushing them to increase their prices.

Weather Conditions and Smaller Harvests

The weather hasn’t been friendly to gherkin farmers either. February and May were particularly dry months, not compensated by average conditions in March and April. This led to smaller cucumbers and, consequently, a smaller harvest overall.

Price Increases in Key Ingredients

The market is also grappling with significant price increases in key ingredients. Here’s a quick breakdown of the price increases and how much each ingredient contributes to the overall price:

  • Vinegar: Price increased by 37% (Contributes 15-20% to the ingredients)
  • Sugar: Price increased by 85% (Contributes 3% to the ingredients)
  • Salt: Price increased by 15% (Contributes 2% to the ingredients)
  • Gherkins: Price increased by 12% (Contributes 50% to the ingredients)
  • Aromas: Price increased by 33% (Contributes 1% to the ingredients)

Proactive Measures and Strategies

Despite these challenges, steps are being taken to ensure the steady availability of goods. Suppliers are looking to finalize contracts with farmers earlier in the year to secure a reliable supply. This move comes after lessons learned from the previous year when contracts were left too late, leading to difficulties in adjusting volumes with suppliers.

Moreover, we’re actively seeking alternatives and considering options from Spain, India, and Poland. These options will help us benchmark our current suppliers or even provide a viable alternative, ensuring that we can continue to offer the best possible prices.

Looking Ahead

While these are challenging times, we remain committed to serving our customers’ needs. We’re constantly monitoring the situation, and we’re ready to adapt and respond to any changes in the market. Rest assured, we’re doing everything we can to ensure that we continue to bring you the highest quality gherkins at the most competitive prices. Stay tuned for more updates as we continue to navigate the dynamic gherkin market of 2023/2024.

For more information and assistance please get in touch!

Read the market update disclaimer.

In other news