Sea-freight pineapple season in 2012-2013

  • Published on 31/10/2013 - Published by PAQUI T.
  • FruiTrop n°215 , Page From 56 to 59
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Volumes in moderation, for positive results

Despite a very difficult start, the sea-freight pineapple season for the past twelve months (October 2012 to September 2013) provided rather positive results. The price fluctuations were not as great as in previous seasons. Last season confirmed an opinion widely shared by operators: the European pineapple market is not infinitely extendible. Hence when volumes on the market are not excessive, the operators still manage to maintain some degree of rate stability.  

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Once more, it was the Sweet imports from Latin America which set the tempo for the sea-freight pineapple season on the various European markets. Periods when the supply was too great, if not excessive, gave rise to steep price drops, as during previous seasons. 

Big distributors for big volumes

Last season also confirmed, many times over, the ever less important  role played by the wholesale markets in the sale of Sweet. For several years, it has been the supermarkets and discount supermarkets which have sold off increasingly substantial volumes on the market in Europe. Without the assistance of the network of distributors of these big names, even for the most highly regarded brands, it becomes massively complicated to market big volumes, as we could observe several times over in late 2012.

The promotions organised by the supermarket sector help manage and absorb the very large Sweet supply, particularly of Costa Rican origin. Participating in these promotions forces operators to optimise their management of the volumes to market at certain points in the season, in the knowledge that outside of these promotions the margin for manoeuvre to sell off the volumes is not all that great. Indeed when demand shrinks, as was the case during last season, operators whose suppliers keep to the planned volumes, within pre-set programmes, are those with the least trouble in clearing their stocks. This is even truer for those selling small brands, since when the market conditions are more difficult, they are very quickly forced to loosen up their prices, as they still lack networks for clearing their excess fruit.

SEA FREIGHT PINEAPPLE EU 2012 2013 IMPORT PRICE
SEA FREIGHT PINEAPPLE EU 2012 2013 IMPORT PRICE

Natural flowering governing the market

While the 2012-13 season was relatively good overall, it was mostly thanks to the Sweet supply from Latin America being smaller overall than predicted for several consecutive weeks. Indeed, the natural flowering in Costa Rica, which had been very big in the last quarter of 2012, led to a clear decrease in the supply to the European markets in the first half of 2013. The harvest of fruits from natural flowering cannot be scheduled, as is the case with forcing, in which uniform and immediate flowering of the plants is artificially induced using products such as ethylene or ethrel. However, once the plant has borne its fruit (natural or induced flowering), we need to wait for the next cycle before we can harvest again; which explains the production falls following major natural flowering periods. We also need to consider the good shape of the North American market, which absorbed more fruits than predicted. So Latin American exporters did not have to take their usual measure of diverting to European markets excessive volumes out of step with demand.

The convergence of these various factors meant that the supply was more in line with demand than in previous seasons. Hence average prices of MD-2 at the import stage remained stable, at between 6.30 and 8.00 euros/box. True, there was a very difficult period with lower prices, but also relatively long periods where the average rates held up at between 8.00 and 9.00 euros/box, with peaks above 9.00 euros. 

SEA FREIGHT PINEAPPLE FRANCE IMPORT PRICE
SEA FREIGHT PINEAPPLE FRANCE IMPORT PRICE
SEA FREIGHT SWEET PINEAPPLE FROM COSTA RICA-BELGIUM IMPORT PRICE
SEA FREIGHT SWEET PINEAPPLE FROM COSTA RICA-BELGIUM IMPORT PRICE

What place for Africa?

The supply from Africa also saw some adjustments. The leading African Sweet export group halted its exports from Cameroon during the season. Indeed, despite its efforts, it failed to overcome the agro-pedological problems preventing it from achieving the quality level of its produce from Côte d'Ivoire and Ghana. Thus the Cameroonian Sweet supply will fall, along with the African supply as a whole, since exports from Cameroon will in future mainly comprise smooth Cayenne routed by air-freight.

The sea-freight Cayenne supply from Côte d'Ivoire remained highly restricted. Furthermore, it was because these exports are aimed at a very small niche market that they were able to continue throughout the season. The reduction in the Cayenne supply also helped ensure uniform quality of the batches.

Weeks 40 to 48 (2012)

In early October 2012, various promotions helped ensure some degree of sales fluidity. Unfortunately, from week 42 the steep increase in the supply led to demand subsiding and rates following a downward spiral. Indeed, demand was at a standstill in the United States, occupied by the Presidential elections and then hit by Hurricane Sandy, until the end of November. So it was quite natural for the Latin American operators to focus on the European markets. The influx of such large volumes, well above the pre-set programmes, was detrimental to all the operators, who could no longer manage to sell off the fruits in their possession. Despite a clear drop in rates, stocks remained large and sales at ASPs (after-sale prices) proliferated. During this critical period (weeks 42 to 48), the big brand batches were in the same boat as small brand batches, which therefore were subjected to even greater pressure. Prices fluctuated from 4.00 to 7.00 euros/box. The Cayenne supply, for its part, still restricted, managed to stabilise at between 5.00 and 7.00 euros/box. 

SEA FREIGHT PINEAPPLE FROM COSTA RICA -GERMANY IMPORT PRICE
SEA FREIGHT PINEAPPLE FROM COSTA RICA -GERMANY IMPORT PRICE

Weeks 49 to 7 (2013)

The considerable fall in supply between weeks 49 and 52 helped heal the market and also stabilise prices. Above all it was the steep fall in supply rather than better demand which enabled rates to pick up for Christmas (from 6.50 to 9.00 euros/box).

At the beginning of 2013 (weeks 1 to 7), the fall in volumes continued. From late February, operators knew that they would not have enough fruits to adhere to the promotion commitments for the Easter holidays. The supply was not only limited, but also unbalanced, with few large sizes. Demand, without being exceptional, was however greater than supply, enabling operators to raise their prices significantly, to between 7.00 and 12.00 euros/box depending on the size! The few Cayenne batches on the market also enjoyed the rise in rates, selling at between 8.00 and 10.00 euros/box. The Cayenne supply was so restricted that it was available for only three weeks at the very most.

SEA FREIGHT SWEET PINEAPPLE GERMANY IMPORT PRICE
SEA FREIGHT SWEET PINEAPPLE GERMANY IMPORT PRICE

Weeks 8 to 28

Around the end of February, confirmation was received that the Sweet supply would be small during the following months. This period (weeks 8 to 28) was marked by relative price stability on the European markets. Fewer fruits than predicted were received for Easter, without it affecting demand. Consumers, hindered by the adverse weather (cold and snow) that battered Europe, did not make many trips to the supermarkets. The supply was temporarily bigger after the Easter holidays because of the poor weather which had delayed the ships. Thanks to the promotions, the situation did not deteriorate. The operators without promotion programmes had to cut their prices slightly to avoid having to manage large volumes. The confirmation by Latin American producers of practically zero natural-flowering fruits ended up stabilising the rates and demand. The lateness of the seasonal fruits and their high prices enabled promotions to continue boosting pineapple sales in the supermarkets.

The Sweet batches sold at between 6.00 and 9.00 euros/box, depending on their sizes and availability, whereas Cayenne batches, still very limited, traded at between 5.00 and 9.00 euros/box.

SEA FREIGHT SWEET PINEAPPLE FROM COSTA RICA-BELGIUM IMPORT PRICE
SEA FREIGHT SWEET PINEAPPLE FROM COSTA RICA-BELGIUM IMPORT PRICE

Weeks 29 to 39

From late June, the Sweet supply was unbalanced by the abundant presence of small-size fruits, while demand was focused on large-size. Volumes fell further during the summer to adapt to the usual weakness of demand during this period. With a good many operators starting their break, demand shrank further. While that had no real consequences on the market and prices between weeks 29 and 35, this was not so from week 30 to week 39. The supply, still unbalanced, started to rise in anticipation of the new school year. Unfortunately, demand did not follow suit, and the markets had trouble absorbing these volume influxes, despite the launch of some promotions. At the end of the season, the markets were saturated with fruits that nobody wanted. The quality problems (batches developing badly) intensified the sales slump. We should also report the absence of Cayenne at the end of the season. The operators seem to have opted to halt their imports, pending better market conditions.

At the end of the season, incoming batches of Sweet sold at between 4.50 and 7.00 euros/box; this did not prevent the proliferation of ASP sales, as well as a good many clearance sales, at prices of less than 4.50 euros/box .

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