Quarterly Market Update – January 2023

January 2023

ItemCountry of OriginBeginning of harvestEnd of harvestUpdates
Baby CornThailandYear roundYear roundFlooding from last year has reduced yields on crops, leading farmers to focus on larger sized product. This is decreasing the availability on the 150ct sizing, while demand for this size has not waned. Supply of cut product has not been negatively affected by flooding.
Blended OilsVariesYear roundYear roundSoy and canola pricing has been on a roller coaster ride of increases and decreases. Crop numbers are solid but export trading has affected market pricing.
MushroomsHollandYear roundYear roundThe Netherlands continues to fight challenges in production costs, including tin plate, compost, and energy. Demand is strong despite cost increases.
Tuna Albacore & SkipjackThailandYear roundYear roundRising raw material costs are being countered by softening demand.
Roasted Peppers and Sweety DropsPeruTwice per yearFebruary | AugustPeru continues to struggle with higher costs of production and low crop yields which have affected continuity of supply.
AvocadoMexicoTwice per yearMarch | OctoberMexican yields are down 25-35%, creating supply challenges as we head into peak demand season in Q1. Cost increases of 25%+ are on the horizon.
Jalapeno PeppersMexicoTwice per yearAugust | JanuaryWinter crop is getting ready to begin harvest in late January. We are seeing continued themes of increased costs for of raw materials, packaging, and fertilizer.
OkraEl SalvadorMarchJuneYields are down about 30% in El Salvador, as well as Mexico. Savor's current needs are covered but we may not be able to cover additional new demand until 2024.
Onions, BlanchedChinaAprilMayThere have been no adverse effects on crop yields in China. Further ocean freight declines will make the Chinese product a more attractive option against the struggling North American crop.
PineappleThailandAprilJuneAlthough demand is softening, there is upward pressure on raw material costing due to the flooding in the past few months.
RaspberriesSerbiaJuneAugustQuality of the 2022 Serbian harvest is excellent. However, demand forecasts indicate there will not be enough good product to go around and cover 2023 demand.
PepperonciniGreece/TurkeyJulySeptemberGreece had a poor 2022 crop with production volume down 50-60%. Cost increases are now being reflected in replacement inventory costs.
Risotto & Carnaroli RiceItalyJulySeptemberItalian crop yields are down by 30% due to drought. Price increases are unavoidable.
ArtichokesPeruAugustNovemberNewly packed product is arriving from the 2022 harvest. Base costs are up 15%-20% due to labor, fertilizer, and packaging costs.
MustardFranceSeptember/OctoberYear RoundRaw material has started to flow into the producers. Shipments are on a measured pace as inventory begins to rebuild from the 2022 shortage.
Olive OilSpainOctoberFebruaryDrought has affected the entire Mediterranean growing region and particularly Spain, which is the largest tonnage producer in the world. Right now there are no indications for price declines as we move into 2023 shipments.
Green OlivesSpainOctoberJanuarySpain is working through a very difficult crop due to drought. Yields are average but the size of the olives is of concern.
Ripe OlivesMoroccoOctoberJanuaryThe most recent crop was devastated by drought, compounded by increased costs of production. Expect double digit cost increases for 2023 shipments.

Logistics Update

We are in a tale of two markets. While predictions of Trans-Pacific ocean rates falling to pre-pandemic levels over the past few months have been accurate, there are many Trans-Atlantic lanes at near record levels. However, volumes are decreasing globally and we're looking forward to additional capacity coming in 2023. More capacity will put additional downward pressure on rates at a time when demand remains weak.