Tropical Dried Fruits 17.01.24
The supply situation experienced a boost during the peak season in late November and December, accompanied be a brief dip in prices that has since rebounded. This fluctuation can be attributed primarily to the delayed pineapple crop, preventing canneries from producing tropical fruit cocktails in November and early December.
After the New Year holidays, there has been an observed decline in the colour quality of incoming raw materials, coupled with a reduction in supply, indicating a potential conclusion to the current crop. In response, many DHD packers are actively securing ample quantities of papaya and other available fruits to ensure a stable supply throughout the year 2024. This precautionary measure stems from their pessimistic outlook on the weather conditions anticipated in 2024.
The supply situation for the recent winter crop was notably unfavourable, especially when compared to the winter crop of 2022, primarily due to insufficient water supply. Anticipations for the upcoming summer crop (March-May 2024) suggest a similarly challenging scenario for the mango crop, with expectations of a price increase, albeit not significantly. This projection is influenced by the adverse global economic conditions.
With an unusually brief winter this year, temperatures are rising once more which is leading farmers to reduce their planting. As a result, we anticipate continued challenges in the cantaloupe crop. Farmers are inclined to prioritise selling their cantaloupes in the fresh market to secure premium prices for their produce.
The price of coconut is getting more expensive these days, as a result of long drought. Prices stay at a high level lately.
In summary, the scarcity of water has emerged as a critical factor affecting all tropical fruits, compounded by the anticipated unpredictable weather conditions in 2024, making future planning more challenging. The water shortage has also led to an increase in sugar prices, a significant cost for DHDs. Meanwhile, government announcements at the end of last year revealed a 5% rise in labour costs, while energy costs are expected to remain unchanged in Q1.
On the demand side, the negative impact of the red dea situation has added to the challenges posed by an overall market slowdown. Consequently, 2024 is shaping up to be another demanding year.