Dehydrates - Tropical Market Report July
Summer harvest is likely to be over soon, as supply in the southern part of the country (where 60% of the supply is grown) has dramatically fallen, and companies have begun to move supplies down from the northern half.
One of the largest canned pineapple factories has been severely impacted by COVID-infected workers, and the local government has pressed them to dramatically restrict their production capacity during the last month.
We anticipate that the summer harvest will last until the end of this month at the earliest, and that the winter crop will begin around mid- to late-September.
Due to the enormous influence on demand from domestic consumption, supply has been drastically cut in the market (from tourism). Because papaya is a short-lived plant, farmers usually leave it alone and grow something else (8 months for plantation).
Despite the extremely limited availability, however, the price does not fluctuate significantly. Because of the reasons stated earlier, demand has decreased dramatically, while several DHD manufacturers still have papaya supplies from which they have accumulated extra supply throughout 2020.
For almost a month, the crop has been finished. Despite the strong supply this year, there was an issue with inadequate manpower and a short peak season period, which caused the fruits harvest to be fairly limited from this crop.
The next crop will be in the winter, tentatively starting in October.
We are in the peak season during the third quarter, and the crop should run through August/September. The price level has remained very consistent over the last two weeks, and we expect it to do so for some time. In addition, the demand for exports from origin has slowed slightly. The pressure is still on to get containers and a reasonable freight rate. Spot Europe material remains rare, commanding a significant premium over origin prices.
COVID was expected to have a significant influence on the business in general due to the limited container and space available for maritime transportation. As a result, we advise all purchasers to be aware of the situation and plan ahead for both production and marine shipping, particularly in the third quarter.
Due to current limited and restricted labour movements, we have seen a minimum of 6 weeks manufacturing lead time on the factory side.