Sea-freight pineapple

  • Published on 6/07/2017 - Published by PAQUI T.
  • FruiTrop n°249 , Page From 30 to 33
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Highs and lows

For two years, the pineapple market has continued to offer up exceptional periods. The exception relates above all to the fairly high prices obtained at certain times of year, but also the duration of these periods. However, it is difficult to really celebrate, since these exceptional moments are haphazard and have little to do with operators’ choices or strategic decisions. Indeed there are very few operators which have cut back their Sweet supply with a view to restoring substantial and stable price levels, in both the short and long term. So the market remains subject to climate vagaries or logistical concerns which have once more shown that the European market has the resources to provide good value for a mass product like the pineapple, whose fate had long been thought set in stone.

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Over the decade following the introduction of Sweet to the market by Del Monte in 1996, this fruit supplanted its great rival Cayenne. More regular and better suited to consumer expectations, Sweet initially sold at distinctly higher prices than Cayenne. Thereafter, prices gradually fell, stabilising as volumes imported by the European market grew. In 2004, European imports broke the 500 000-t mark, and in 2014 they reached well above the 900 000-t mark.

The proliferation of origins and brands of Sweet over the past decade has contributed to a slump in prices, which have overall seen levels of between 6.00 and 8.00 euros/box depending on the size, outside of periods of crisis or the rare bright spots.

In 2015, the fall in Sweet exports to Europe (837 000 t), especially from Costa Rica which had suffered from bad weather, resulted in average rates strengthening. They were between 7.00 and 9.00 euros/box during the 2014-15 campaign, and between 8.00 and 11.00 euros/box in 2015-16, with peaks of 13.00 euros/box. The rates currently observed show that these thresholds have risen further, with average prices per box reaching and even exceeding the 12-euro mark for several weeks, with occasional peaks of 16 euros!

However, as comforting as these figures may be, they cannot conceal some concerns. From October to December 2016 (weeks 40 to 52), the pineapple market was quiet. True, this is often a complicated period. Hence over the past two campaigns, pineapple sales for the end-of-year holidays have been fairly laborious. However, the flatness of the market was most marked in late 2016, and several batches were available at post-sale prices. The Costa Rican supply continued its rise, while the market was not interested in the fruit. While Hurricane Otto spared the origin’s production zones, the floods it caused prevented several ships from loading their cargo. So the market received less fruit for ten or so days before Christmas, enabling it to absorb the outstanding batches. Demand, without being high, was invigorated and helped prevent a steeper fall in rates, which saw levels of between 6.00 and 8.00 euros/box (outside of post-sale prices).

At the beginning of the year, the heavy rains in Costa Rica limited its export capacities. Demand, although quiet, nonetheless outstripped the supply, and the market followed a positive trend until late February (week 8), with high though reasonable average rates of between 8.00 and 11.00 euros/box.

In late February, the operators received confirmation that the overall Sweet supply would be well below demand, at least until Easter. On top of the lack of availability, there were various shipping delays which heightened the impression of under-supply in certain weeks. We might also mention the juice and canning industries, which contributed to limiting fruit availability for the export market. At this point prices soared on the European market, giving rise to speculative sales before Easter (week 15). Average rates were between 10 and 14 euros/box, with sales sometimes at distinctly higher prices (18 euros/box).

Before Easter, the fall in the overall supply enabled the established brands to charge high rates over a fairly long period. Yet as we were already saying, these brands had undertaken a structured supply cutback approach in order to strengthen their prices. A host of small brands also took advantage of the paucity of the overall supply, and sold at prices never previously reached.

The shipping delays in week 15 caused the market to swell after Easter, at a time when demand was shrinking. A fairly marked phase of falling rates then began, which intensified with the increase in Costa Rican volumes. In late April, the Costa Rican supply was set to be bigger over the coming weeks because of the natural flowering phenomenon.

We cannot help but observe that pineapple demand often exhibits flat spots. The operators probably need to refocus on quality of supply and cutting back volumes, to be able to charge high prices over long periods, as the big brands already do.

sea freight costa rican sweet pineapple - belgium - import price
sea freight costa rican sweet pineapple - belgium - import price
sea freight costa rican sweet pineapple - germany - import price
sea freight costa rican sweet pineapple - germany - import price
sea freight costa rican sweet pineapple - netherlands - import price
sea freight costa rican sweet pineapple - netherlands - import price
sea freight pineapple - EU - import price
sea freight pineapple - EU - import price

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