Market Report February 2020

The Market in General

The Corona virus and a major locust plague in East Africa are giving cause for serious concern. The former has to be monitored closely, especially with regard to the spreading of the virus and its consequences, also on supply chains worldwide. The Chinese New Year festival was extended for a whole week until February 10, but also after this date business will be slow. The plague in East Africa (Kenya, Ethiopia, Somalia and potentially also Uganda and Sudan) is likely to devastate the agriculture in large areas of these countries. Apart from this being life threatening to the people there it will very likely also have an impact on the relevant product markets.

Market Info and Recommendations

Tuna: Catches of skipjack were very high in the Pacific in 2019, even a record year for the East Pacific ocean. After the price for raw fish plummeted well below USD1.000/t in December, the market has now come around drastically. Fish landings in Bangkok as well as in Manta but also current catches have decreased substantially pushing up prices by more than a third to USD 1.300/t since the beginning of the year. We see this trend continuing. Fish caught fad-free as well as MSC-certified catch is getting dearer likewise; the demand for MSC is growing continuously. The current market price should still be considered favourable. We see the market going up further and do recommend covering the demand for the whole of 2020.

Pineapple: Raw material remains scarce and is getting even more expensive. Thailand, the main supplier of canned pineapple, is currently harvesting at a yield down to half of the normal volume and this is likely to continue also in the next summer crop. Thus supply will be seriously down for the rest of this year. Quotes for fresh pineapple paid by factories are reaching Baht 12/kg - the price stood at Baht 5/kg one year ago! The market cycle is continuing, there is no easing in sight. The situation is worsened by a drought in the pineapple growing areas in Indonesia. It seems clear that security of supply rather than just price will become the primary concern soon – make provisions! We are also offering certified organic pineapple ("Queen"), pieces and also crushed.

Olives: This was a bad season virtually all around the Mediterranean. Accordingly Spain, being by far the biggest supplier, is showing a much lower yield than a year before in its final reports. Even the drastic decrease in its exports caused by punitive tariffs of the USA is not altering the situation - prices are going up. We carry many varieties and preparations also from organic cultivation.

Sesame Paste/Tahini: Supply of sesame seed should be quite good from the crop season which just ended in East Africa, processing is starting now. However, the current plague of locusts and the affect this may have on the market has to be taken into account. We recommend to secure supply and contract now. Our tahini suppliers are being closely audited by our QC and we are checking diligently for e.g. pesticide residues, salmonella and cadmium. We are offering different degrees of roasting and grinding and also organic tahini.

Chick peas: Quotations are moving up slightly half time between crops, but the price level should be considered quite reasonable still. We are offering dried chick peas (cleaned and extra cleaned) as well as canned in brine, both also certified of organic origin.

Bulgur: Stable supply from Turkey at unchanged prices. We are offering different kernel sizes (fine/medium/large) as well as yellow and brown bulgur. We provide different levels of cleaning and sizes of packaging, also in paper bags and also in organic quality.

Couscous: This is available regularly, both in medium and also large size and also in 5kg and 25kg paper bags. We also offer certified organic couscous.

Quinoa: Prices are quite favourable now before the new crop is starting in Peru in April. We are offering black, white and red quinoa as well as blends, in paper bags and also organic quinoa. New:pre-cooked, dehydrated quinoa.

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Issued: 11 February 2020