Quarterly Market Update – April 2022

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Quarterly Market Update – April 2022

April 2022

ItemCountry of OriginBeginning of harvestEnd of harvestUpdates
Baby CornThailandYear roundYear roundUpcoming crops are predicted to be lesser in yield. Demand is steady. Packaging costs continue to be higher than historical.
Blended OilsVariesYear roundYear roundThe industry is working to offset the shortage of Ukraine sunflower oil, and the market has seen escalation of soybean and canola pricing, resulting in the highest prices per pound in the last 4-5 years. Until the US and Canadian summer harvest takes place, short-term relief in pricing is unlikely.
MushroomsHollandYear roundYear roundDouble digit cost increases are in play. Main cost factors behind the increase are wages and fertilizer, energy, and packaging costs.
OnionsChinaYear roundYear roundCrops continue to be good. No adverse conditions to report. Ocean freight for frozen product out of China is still a major factor in keeping costs elevated.
Tuna AlbacoreThailandYear roundYear roundHigher fuel costs are inhibiting fishing activity, leading to less raw materials being available. Although demand is stable right now, we may see supply tighten against stable demand, resulting in higher costs.
Tuna SkipjackThailandYear roundYear roundHigher fuel costs are inhibiting fishing activity, leading to less raw materials being available. Although demand is stable right now, we may see supply tighten against stable demand, resulting in higher costs.
AvocadoMexicoTwice per yearMarch | OctoberMaterial yields are way down, causing the cost for fresh avocado per pound pricing to almost double. If this trend continues, pricing would exceed 2017 record pricing.
PineappleThailandAprilJuneCrops are steady. Labor and quarantine are issues in harvesting and processing. These will be driving factors in costing.
QuinoaPeruMayJuneForecasts for upcoming crop is that there will be more red quinoa than last year, and 30% less white quinoa than last year. The weather is holding up, with rain falls as expected.
MangoMexicoJuneAugustSummer harvest appears to be on track barring any unforessen tropical weather issues.
PeppersChinaJuneSeptemberIncoming crop is good. No adverse conditions to report. Ocean freight for frozen product out of China is still a major factor in keeping costs elevated.
ArtichokesPeruJulyOctoberSeeding has been completed for early crop harvesting in July. Expect 15-18% cost increase over 2021 pricing.
EdamameChinaJulyNovemberIncoming crop is good. No adverse conditions to report. Ocean freight for frozen product out of China is still a major factor in keeping costs elevated.
PepperonciniGreeceJulySeptemberRaw materials are tight and sliced pepperoncini is in very short supply. Fingers are crossed for a much improved summer crop.
Green OlivesSpainOctoberDecemberFinal rainfall in Spain improved harvest results. Overall, the crop was average with price pressure on larger size olives. A greater than 10% increase in cost of auxiliary materials, energy, and freight has led to significant rise in prices.
Olive OilSpainNovemberMarchCustomers are now looking to source other oils such as olive oil, grape seed oil, and other seed oils to replace the sunflower oil that is not coming out of Ukraine at this time. Base cost of pure and pomace oils have risen sharply as the market demand has taken on a whole new dynamic. Do not expect any price relief as we move through the end of 2022.
Kalamata OlivesGreeceDecemberMarchCrop was slightly below average yields with no carryover. Expect double digit cost increases.
Caramelized OnionsSpainThis item is being addressed in this update because our caramelized onions contain sunflower oil. Ukraine is the largest global producer of sunflower oil. We will see an increase in costing. We hope ocean freight rates will stabilize and can offset the increase from the sunflower oil.

Logistics Update

We have all been deeply saddened and disturbed by the images of what is taking place in Ukraine. Our hearts go out to the Ukrainian people in harmʼs way and those displaced from their homeland. Our thoughts continue to be with everyone impacted during this incredibly difficult time.

As a globally sourced brand, we felt it important to inform customers that we are not experiencing any significant business impact from the Russia-Ukraine War. We do not currently source products from either country or use shipping lanes near the region. To date, we have not seen any disruptions getting Savor Imports products to the U.S. and do not have any indications that that will change.

I will continue to lead an internal team to monitor the situation. We are committed to communicating notable updates or changes that could impact the business we do together.

We formed Savor Imports to solve international supply chain issues and inefficiencies. We will continue to do just that every day. But those issues seem ever so small in comparison to what the people of Ukraine have endured and are faced with moving forward. We hope for a quick resolution to the situation.

Respectfully,

G. Lance Ficken

Savor Imports