Quarterly Market Update – April 2021

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Quarterly Market Update – April 2021

April 2021

ItemCountry of OriginBeginning of harvestEnd of harvestReport Quarter
Baby CornThailandYear roundYear roundSupply is unstable due to farmers turning focus to higher revenue crops. Additionally, cost of packaging and appreciation of the Thai baht will add to higher landed costs.
Tuna AlbacoreThailandYear roundYear roundCatch rates continue to be less than expected. Pricing will rise slightly.
Tuna SkipjackThailandYear roundYear roundCatch rates continue to be less than expected. Pricing will rise slightly.
PineappleThailandAprJunSupply is increasing but not yet to normal levels. There is a concern of higher nitrate levels due to over-fertilization, leading some farmers to harvest not-yet-ripe fruit. Additionally, the Thai baht is appreciating relative to US dollar. We do not expect landed costs to lower for another two quarters.
QuinoaPeruMayJunWhile we had previously expected weather would only delay harvest time, we now know that it will also weaken harvest yields by 30%, particularly red quinoa.
AvocadoMexicoTwice per yearMar/OctFruit prices will accelerate past expected pricing early this year and summer fruit costs will be evident much earlier than previously thought. Price should soften and moderate with harvest in September and reduced reliance on Flora Loca from off season bloom. Transportation to the US border is still an issue with truck shortage causing increased delivery costs.
MangoMexicoJunAug2020 Mexican crop fell short of expectations due to issues with fruit maturity. Improved outlook for new 2021 crop in June.
Arborio/ Carnaroli RiceItalyJulAugRaw material costs have stabilized.
Olive OilSpainNovMarAlthough Spanish production has rebounded compared to last year, the declines in production from Italy, Greece, Tunisia, and Portugal will overshadow Spain’s increases. Meanwhile, consumption and exports have remained strong. Expect continued rising prices.
Manzanilla OlivesSpainOctDecThe final harvest data for 2020 yielded a slight increase from 2019 but with smaller fruit which has resulted in higher prices. Another factor that explains the higher prices is the increase of the Spanish retail market demand due to COVID confinement. This has compensated the lower demand from the US and the foodservice market in Spain because 50% of the production is used for the Spanish retail market.
Queen OlivesSpainOctFebThe final size of the crop is average in kilos and smaller in fruit size. Even though demand has been very low, the market is beginning to show an uptick in demand.
ArtichokesPeruJulOctFirst plantings for 2021 crop have started. Crop should be similar to 2020 in terms of yield. Cost increases are coming due to rising costs of packaging, labor, and ingredients such as citric and ascorbic acid.
ArtichokesSpainFebAprilCrop is delayed with less volume yield. Appreciation of the euro against the US dollar continues to be a challenge.
MushroomsHollandYear roundYear roundExpect cost increases. Demand for product is high. Cost increases are being felt due to key factors such as energy, tin plate, raw ingredient costs, and appreciation of the euro against the US dollar.
Bamboo ShootsChinaJulyAugBamboo crop yields are down. Packaging and Chinese yuan appreciation against the US dollar will also contribute to higher landed costs.
EdamameChinaJulyNovSupply and pricing are stable. Other factors of concern­—currency, packaging and freight—will not adversely affect us due to our contracted pricing.
Marcona AlmondsSpainAugOctExpect price escalation due to frost that hit Spain in early March.
RaspberriesSerbiaJulySeptEurope is completely empty with new season coming in 12-15 weeks. Demand for all frozen items has increased at least 30% and will remain as such for another year. Expect higher prices.
RhubarbPolandJuneJulyPoland had a good winter and growers are very optimistic about crop yield, hoping for stable supply and pricing that will meet increased demand.
Roasted Red PeppersPeruFebMayPepper crops are running well with no major issues that affect the product availability. Anticipate costs increases as we move further into 2021. These cost increases are due to mandated wage adjustments in Peru and shipping costs.
White and Red VinegarVarious countriesYear roundYear roundRetail demand has sky rocketed creating shortages for foodservice. Several of the largest US producers do not anticípate supply and demand stabilizing until mid to late summer.
Balsamic VinegarItalyYear roundYear roundThere will be price increases across the board due to base raw material costs and appreciation of the euro against the US dollar.

Logisitics Update

boat

As we head into the second quarter, the ocean liner shipping industry continues to face unprecedented heavy port congestion, equipment imbalances, and vessel delays worldwide.  We anticipate the worldwide congestion, capacity limitations, and surging fuel costs combined with the US dollar stabilization to translate as increases in transportation costs and operational expenses in the second quarter. 

The good news is, we’re beginning to see the first signs of congestion loosening up at the ports of Los Angeles /Long Beach as well as major China ports. We believe we can expect to see a return to “normal” shipping schedules and capacity by the end of Q3, and spot market ocean rates receding by the end of the year.