WZW Food Trading

How to deal with pineapple shortage in Thailand

Issuing time:2021-04-19 10:35

In July, Thailand's canned pineapple raw material output was 30000 tons, again set a new low this year. The average price of raw materials for pineapple in Thailand this month is between THB 14-15 / kg.

In the case of reduced production, the total output in the seven months from January to July was 490000 tons, a 35 per cent decrease from the same period last year and 55 per cent less than that in the same period in 2018. Industry sources contacted said the total output this year would be less than 900000 tons, or even below the original estimate

Due to the lack of processing materials, the early annual maintenance interruption occurs in August, and most cannery has been stopped gradually from the beginning of July.

As of July 27, only three Thai cannery were still in operation: kuiburi canned fruit, Dole huahin and prime product industry.

Full production is expected to resume in October, but some industry sources have already expected delays.

According to the latest available customs data, Thailand's total export of pineapple cans between January and June was 168200 metric tons, a 25 per cent drop from the same period last year.

Customs data show that the monthly export volume in May and June is only 23000 tons, which is significantly lower than in previous years. However, FOB prices rose 42 per cent to usd127 per ton year on year.

Sources in Indonesia and the Philippines noted that recently retail market demand has been very strong and sometimes oversupply.

As of August 4, Indonesian customs data for canned pineapples can be provided only until April 2020. The number shown is similar to the same period last year. The United States is still the largest market. During this period, the average price of shipments offshore rose 52 per cent year on year.

the Philippines

The Philippine customs data on canned pineapple trade was recently extended to may2020. The data show that exports in the period increased by 110% year-on-year, while exports to the United States doubled from the previous period, more than 100000 tons. There has also been significant growth in secondary markets such as China, South Korea, Japan or Spain.

So far, the US offshore price this year is flat with the same period last year. The average freight related to China fell 11.4% year on year. South Korea and Japan's average FOB rose slightly by 6% and 3% respectively. Spain has a high freight rate, with an average FOB increase of about 52 per cent year on year.

So far, the supply of raw materials in Thailand has been relatively low this year, and the panic buying of COVID-19 has led to the eventual increase of top market demand, resulting in a Domino effect on the whole pineapple market.

Thailand's traditional markets, such as the United States, are now relying on other suppliers, especially the Philippines. Philippines has a high versatility and can be adapted to demand (fresh or canned). Given that, Philippine industry confirmed last week that demand for canned pineapples is significantly higher this year, despite insisting on next year's uncertainty.

Fresh pineapple supply remains the top priority for Philippine fruit producers. But sources from a large local company point out that the United States is also a lucrative market for canned pineapples. "Pineapple varieties exported to the fresh market are different from those processed into cans," he said "However, even if fresh demand declines, the variety can still be used as an alternative to canned varieties."

This year, the gap between Thailand and the Philippines, the world's Pineapple canner, is narrowing. Similarly, the latter's fresh pineapple exports increased by 6.4 per cent between January and may, to 265000 tons, after Costa Rica.

The Philippines is now the world's largest supplier of pineapple juice, and the gap with Thailand, the traditional world supplier of canned pineapple, is narrowing. Similarly, the Philippines' fresh pineapple exports rose 6.4 percent from January to may, reaching 265000 tons, ranking second, accounting for 18.18 percent of the global market, compared with 55 percent in Costa Rica, the largest supplier of pineapples.

Share to:
WZW Food Trade
Home                    About us                    Product Center                    News Center                    Contact us
WhatsApp:+380996888888                                              Email:wzwimportexport@gmail.com                                         Address:Am Thyssenhaus 1-345128 Essen,Germany