Market Report April 2023
Pineapple
The summer harvest in Thailand has started, although it is already becoming apparent that volumes are likely to be lower than last year. The local drought meant that some factories had to temporarily suspend production due to a lack of fruit availability. This is also reflected in the increased price of raw materials. The weaker US dollar (vs. THB) in recent months and higher production costs are also contributing to the fact that Thai packers are currently charging higher prices than in the winter.
On the other hand, demand for pineapples is still relatively weak, so it remains to be seen where the price will ultimately settle in the coming weeks. Thanks to our strong supplier relationships, we can guarantee you the best possible offers. Feel free to contact us!
Dried apricots
The devastating earthquakes in Turkey hit the main growing region around Malatya hard in February. The factories there were badly damaged and many people fled the area. It will be months before production resumes. There is currently no precise overview of the stocks that can still be used. However, prices have already risen by around 10% and are likely to rise further.
The flowering period for the new apricot harvest is in March/April. After three poor harvests in a row, the hope is for favorable weather conditions. In addition to the weather, the price trend will largely depend on how quickly the region recovers from the disaster. In particular, it is questionable how well the farmers will now be able to take care of the cultivation. The availability of fertilizers, pesticides, labour etc. is also questionable at the moment.
We source our dried apricots from a producer in Izmir, where production is currently running smoothly, provided there are enough raw materials available.
Asparagus
Asparagus prices are currently high in Peru. Asparagus with a thin diameter is sold out until further notice, while thicker diameters are also very expensive. The higher prices are due to the increase in the cost of fertilizers, energy and higher wage costs. In addition, freight levels are still quite high. Large quantities of asparagus from Peru are not expected in the near future, nor can we expect any major price reductions in the near future.
In China, we are at the beginning of the harvest season. Large price reductions are not to be expected here either. Good qualities will be sold off quickly.
We recommend that you contact us now and coordinate your requirements with us so that we can secure qualities and quantities from reliable Chinese suppliers for you.
Tuna
Scarce supply and rising prices – that is our tuna forecast for the coming months. Catches in both the Western and Eastern Pacific have so far remained well below expectations, which is why raw material prices on the free market in Bangkok are currently at USD 2,000/mt – in January they were still at USD 1,700/mt. The price situation in Manta is firming up again after a brief easing at the beginning of the year at the end of the Veda. Prices here have risen from USD 1,750/mt in January to USD 1,850/mt today.
We are currently seeing shortages of MSC-certified tuna flakes in particular. This is where the reduced supply of raw materials meets increased customer demand. As a result, further price increases are to be expected.
We recommend covering open requirements for this year at short notice. A switch to tuna chunks should also be considered if necessary. Feel free to contact us!
Tomatoes
Spanish tomato producers are confident about the coming season in the Extremadura region. The water reservoirs in the Vegas Altas and Vegas Bajas regions are sufficiently full due to the rainfall in December and January and an increase in cultivation volumes to 2.6 million tons of raw material (previous year: 2.2 million) is planned. In mid-February, an agreement was reached with the farmers on commodity prices of EUR 150.00 per tonne (previous year: EUR 103.00). Energy costs will be lower than in the previous year, but still at a high level. Negotiations between energy suppliers and producers are still ongoing. The costs for packaging material (except aseptic bags) will also be lower.
For the Andalusia region, on the other hand, the reservoirs are holding even less water than in 2022. It can be assumed that very little raw material will be grown and that producers will produce even less, if any at all.
Overall, we can assume that a larger quantity of tomato products will be available compared to the previous year – however, as with pineapples and the like, prices are expected to rise. We expect the first price indications at the beginning of May.
The EU’s duty-free annual quota for prepared tomato products from Turkey is already exhausted this year at the end of March. This affects sun-dried and semi-dried frozen tomatoes, for which 14.4 % import duty will be payable from the new harvest.
Although we consider our sources to be reliable, we do not assume any liability for the completeness and accuracy of the information listed here.
With kind regards
HENRY LAMOTTE FOOD GMBH
(created on 03.04.2023)
