May 2024 Fruits and Vegetable Report

Apple

Apple season is in full bloom, and apple calibers are smaller on average, causing yield losses of between 68% up to date.

The market is showing a decrease in puree demand, especially organic apple puree, which has caused growers to prioritize conventional formats instead

(Chile) (Peru,Spain,Egypt)

Artichoke VEGETABLES

In the southern region of Arequipa, artichoke production has faced a one-month delay due to adverse weather conditions (lasting 30-35 days) However, in the northern part of Peru, the outlook is more promising, with a favorable start expected in August as the new season begins The goal is to recover from losses incurred last year and anticipate a more typical crop year Despite these challenges, artichoke prices have remained stable Meanwhile, Spain, still in recovery mode, anticipates a significantly reduced artichoke crop due to drought conditions, resulting in higher prices (Egypt

The artichoke crop season in Egypt has concluded, and pricing has remained stable Egypt is actively working to enhance the quality of its artichokes to compete with Peru The next artichoke season will begin in January 2025 and run through April 2025

Asparagus

(China,Peru)

Production in China will begin around April 15, about one week earlier than in previous years The raw material situation has been affected by weak sales in the last two years. This year's harvest and factory production volume will be reduced, estimated to be 30% less The raw material price this year is also estimated to be lower than the last two years

Peru expects a 20-25% loss of asparagus this year due to last year’s poor season, conditions to improve by 2025

BERRIES

(Chile,Serbia,Mexico,Morocco,Peru)

Berry season is reaching an end in Chile There are no more strawberries available and very few stocks of raspberries and blackberries currently Overall, the strawberry crop has seen a 30% YoY decline caused by a decrease in planted acreage Overripening was observed towards the end of the Chilean summer, causing even lower yields by the end of March

Blackberryand Raspberry

(Serbia)

In Serbia, most raspberries and blackberries that meet US pesticide requirements have been sold out until the new crop Raspberry season will start in early June Although there have been a few days of snow in the fields during the week of April 15th, the crop has been advancing well Blackberry will also be early and should not be impacted by the snow this past week

(Mexico,Morocco,Peru)

Harvest season begins in October every year, with production increasing gradually until reaching its peak in February and March then slowly ending by the end of June Production started very slowly in October, as cold temperatures caused the fruit to take longer to ripen Increasing temperatures in Q1 have helped the fruit reach optimal brix, sizes, and a bright red color The crop is noted to be normal YoY Demand for frozen strawberries has started to increase as the fruit’s availability in other regions, such as Chile, decreases

Morocco's volume is down over 35%, but quality has been better than previous years

Peru is expected to have more acreage for its strawberry season, which will start in September

Sales have been good in the past 2-3 years

Many farmers transferred from banana fields to bamboo shoot planting, and the rain has been plentiful, leading to good growth

The current raw material that is growing is stable

Banana

BambooShoot (China) (Colombia)

Bananas are harvested all year round, with peak season months extending from October to May

Currently, fruit is abundant, but the production peak is expected to end by midMay At this time, production should decrease slightly, but not considerably, monthly until September Rains are expected to increase as La Nina weather patterns move in by June

Mango Broccoli

(Frozen:Mexico,Spain,Ecuador)

Broccoli season in Mexico has been normal this year in terms of acreage planted and yields, as well as quality; however, the exchange rate variation (Peso revaluation against the Dollar) by about 10% compared with last year, has been a detrimental factor causing price increases in Mexican broccoli and other products

The season has also been abundant in Spain, but it is now finished For the upcoming season, in which harvest is expected to start in October, we should be able to start quoting new prices around June in order to secure the needed volumes for the year

While the season in Ecuador started a bit late, it has been a normal crop overall However, it's important to note that they have already sold out for the remainder of 2024.

Coconut (China)

The cost per coconut increased, on average, 44% between 2023 and 2024 Even though the cost is improving, it is still high compared to last year's cost of RM

MANGO

(Mexico,CostaRica,India,Vietnam)

The Mango season runs from January until early October, with the main flowering period happening in March and April in the primary growing states of Sinaloa, Guerrero, Nayarit, Chiapas, and Oaxaca This season has seen a slight delay during the flowering period in March, causing frozen mango availability and pushing the start to May vs April, as predicted earlier in the year In the fresh market, Mexico is competing with other central American countries such as Nicaragua and Guatemala which have been gaining ground due to much lower exports from Peru Frozen Mango demand is also predicted to be strong this year to offset much lower supply from Peru The crop is expected to be average, with more suppliers entering the market Everyone is ready for the Mexico mango crop to start filling in the shortages from the Peruvian crop Demand is high, so prices will remain high, at least initially Although there will be some production in May, the main volume will start is expected in early to mid-June All expectations at this time are for a normal crop

Costa Rica offers a small Mango crop (Tommy Atkins variety), with harvest going from March through the end of April. Costa Rica has not been a vital mango exporter to the US historically, but this dynamic has seen a change in 2024 due to increasing US demand fueled by low availability from Peru. This year ’ s small crop was normal.

In India, the Mango Totapuri variety harvest period occurs between March and May in 8 regions in the country. High temperatures and limited rainfall are causing the trees to drop the fruit too early when it has not ripened yet Even though late April and May rains will help increase the fruit’s size, this dry effect is causing the overall crop yield expectation to decrease by 20-30% YoY

The mango Alphonso variety harvest period occurs between May and the end of June in the western and southern regions of the country In the west, heat waves and low humidity have caused the plant to be affected by pests, decreasing yields by 10-12% during the initial flowering in April/May Dry weather conditions have also prevailed in the south, causing overripening and a decrease in the overall quality of the fruit Crop yield expectation for the Alphonso variety is a 1013% decrease vs 2023

In Vietnam, the harvest period occurs between March and the end of May Demand has increased as buyers look for alternatives to lower production in southern hemisphere countries like Peru Exports into the US for Vietnamese mangoes have increased 17% YoY The crop was considered normal and is expected to be finalized by the end of May or beginning of June

MandarinOrange (China)

Only a few factories can pack from frozen mandarin raw material; such production might last for another month The factories only pack the order volume, which failed to be produced before CNY (before the fresh raw material/crop ended)

After the season concluded, calls for shipments have been slow, and the factories could still have some inventory

Papaya

(Colombia)

Papaya and banana fields used by our Colombian supplier are located on the Pacific side of the country, which has seen high temperatures during Q1 and low precipitation

The papaya plant is susceptible to drastic changes in temperature/weather conditions, which causes delays in the ripening process and increased pests However, even when yields are lower, production seems to be higher compared to the same time in 2023, when rains severely impacted the region

Peach&Pear

(Canned/ShelfStable:China)

It is currently the flowering stage season, and growth has been positive Although the weather for the next half-month is predicted to be normal, the weather in May will determine a good crop year This year is a normal crop thus far

(Frozen:Chile)

The pear season, which commenced in March, is now nearing its end. Processors have reported a noticeable 5-6% decrease in crop size compared to the previous year.

VEGETABLES

PINEAPPLE (Thailand)

Fruit tonnage in Thailand continues to be problematic, and no real improvement is expected, at least until the 4th quarter of 2024. Fruit prices remain high, ranging between 12.5 and 13.5 Baht/Kg (typically, in the past, it was closer to 8 Baht/Kg, and most pending contracts were finalized at or even below this level)

The average annual volume of pineapple for the canning industry covering 2019 through 2023 is lower by approximately 600,000 MT (37% lower) compared to the previous six years (2013 through 2018). Unlike other crops like mango, jackfruit, rubber, etc., farmers can typically obtain much better investment returns It also takes around 18 months for a pineapple to produce fruit from the time of planting Only recently have farmers started to plant again due to higher fruit prices being paid

The minimum wage in Thailand has risen by 68% from 203 Baht/ day to 341 Baht/ day over the past 13 years (2009 through 2022) It is expected to go up fairly significantly within 2024, to levels closer to 450 Baht /day due to recent elections making promises to voters This increase in labor costs could potentially have significant effects on fruit production and prices, a factor that all stakeholders should be prepared for

Due to continued global pressure to keep pineapple prices low, over ten factories have closed over the past several years It is becoming increasingly evident that keeping prices low in the long term is not sustainable

The total Thai harvest output for 2024 is forecasted to be only around 0 75 to 0 8 million MT

The Philippines has also been significantly impacted by hot, dry weather (El Nino), and its tonnage is reported to be down by 13-15% compared to the previous year's output of 1.1 million MT.

Indonesia was not spared, and they, too are finding their tonnages down by at least 12% compared to their forecasts

In all major Asian supply areas (Thailand, Indonesia, Philippines), production is well behind, and shipments are in some cases, months behind requested ship dates Indonesia is expecting some improvement in the coming months

Peppers

(Canned/ShelfStable:Peru)

(Frozen:Mexico,Spain,Turkey)

Peppers in Peru are being planted a month from now (in June) The demand for peppers remains strong, leading to price increases The crop is on track for harvesting in July and August, driven by the need to recover from a challenging year in Peru

Due to weather-related issues, the Pepper season in Mexico has been short this year Packers are sold out already for 2024, and there is a big shortage of red peppers The new season is expected to start again in December

Spain and Turkey had difficult crops last year (especially Spain, which has had two bad consecutive seasons already), but they are expected to start a new season again in August this year. Some packers are planting additional acreage in different areas to mitigate possible shortages in the typical growing regions and offer more products this year at more reasonable prices. We should be able to start quoting around the end of M

PinkGuava

(India)

El Nino brought abundant rains during Q continued to a lesser extent in April wit longer dry periods The rains have been beneficial to the banana and plantain c

Expectations are for rains to start to su as weather patterns switch to La Nina i May into June Production should not be affected by this situation

Plantain (Ecuador)

El Nino brought abundant rains dur continued to a lesser extent in April periods The rains have been benef banana and plantain crops

Expectations are for rains to start t weather patterns switch to La Nina June

Production should not be affected situation

WaterChestnuts

(China)

Chinese domestic market sales are strong despite the small raw material output The raw material price is currently high, at least RMB 7 00/Kg

Production can last until the end of May

VEGETABLES