World processed pineapple market

  • Published on 31/10/2013 - Published by LOEILLET Denis
  • FruiTrop n°215 , Page From 41 to 43
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A glimmer of hope

While the fresh and processed pineapple markets do not normally have much in common, in 2012 they went through the same adverse conditions. On the processed side, the influx of fruits to the processing factories and the lifelessness of world demand held back the trend. On the fresh side, the unrestrained increase in supply went hand-in-hand with the increasing commoditisation of the product, eroding its added value bit by bit. However, 2013 seems to be a more favourable year for both markets.

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World pineapple production is around 22 million tonnes, and has doubled in less than thirty years, with approximately 9 million tonnes of pineapple (fresh fruit equivalent) traded. There are actually two coexisting markets. Two thirds of trade volumes involve processed pineapple (tinned and juice), and the other third fresh pineapple. These two markets do not share many features. The industries are highly specialised, adapting to the type of product and to the geographic zones which feed world demand. In terms of processed pineapple, it is Asia which rules the sector, as it has done for decades. Thailand is the historical and central source. It dominates the tinned pineapple market, and consequently the concentrated pineapple juice market. The Philippines, Indonesia and China round off the world supply. Outside of Asia, we should point out the modest tinned pineapple production in Kenya, and the juice production in Costa Rica.

PINEAPPLE MARKET WORLD PRODUCTION AND IMPORTS
PINEAPPLE MARKET WORLD PRODUCTION AND IMPORTS

Speculation deciding the areas planted

The processed pineapple market is highly speculative. It is ultra-sensitive to the prevailing climate conditions in the Asian production zones; but not only to that. The supply, especially from Thailand, is highly dependent on the surface areas that producers allocate to pineapples. And these vary greatly from one season to another depending on the price at which the factories purchased the fruits the previous year. Indeed, the purchase price rockets when the supply is limited, which naturally drives producers to expand their cropping areas: and the vicious circle begins. Finally, the market is greatly influenced on the demand side by the world economic outlook, and on the production cost side by the energy and metal prices for the tins. Furthermore, the market is also highly dependent on movements in exchange rates.

PINEAPPLE MARKET 65°BRIX CONCENTRATED PINEAPPLE JUICE PRICE
PINEAPPLE MARKET 65°BRIX CONCENTRATED PINEAPPLE JUICE PRICE

Thailand in trouble

At present we can say that the sector is in a delicate phase. The 2012 season was very bad. The harvest between April and June was particularly abundant. In Thailand, the government was forced to set up an emergency fund to assist thousands of producers affected by the fall in purchase price (4 THB/kg up to 8 tonnes per planter). This is a long way from 5 to 6 THB, the level reached in 2010 and 2011. This dramatic situation coincided with a lifeless international market and falling Thai exports. According to Foodnews, 2013 is confirming a return to normal, with purchase prices for Thai producers going back above 5 THB/kg thanks to a supply down to 1.7 million tonnes, as opposed to 2.2 million tonnes in 2012. Analysts are even more pessimistic for 2014, announcing a production of just 1.5 million tonnes. Prices on the international market have finally taken an upturn. One box of 24 x 20 oz tins is quoted at 10.5 USD FOB Bangkok. We are still a long way from the 14 to 15 USD/box of late 2011. The international rate for 65° brix concentrated juice is also looking better, peaking in July 2013 at 1 300 USD/tonne CFR Europe. Here too, we are a long way from the 2 000 USD reached in early 2011 .

PINEAPPLE MARKET WORLD PRODUCTION
PINEAPPLE MARKET WORLD PRODUCTION
PINEAPPLE MARKET PROCESSED PINEAPPLE WORLD EXPORTS TINNED AND JUICE
PINEAPPLE MARKET PROCESSED PINEAPPLE WORLD EXPORTS TINNED AND JUICE

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