As previously informed during 2016, Vietnam went through an intense drought period due to combined effects of El Nino weather patterns and hydroelectric dams retaining the Mekong’s waters in upstream countries. This caused soils of Mekong delta to run dry, and contaminated with salt water from ocean brines. Regions most affected were the coastal and south provinces, including the pineapple growing districts. This drove a clear lack of supply for the rest of the year, and prices went upmore than double.
In 2017, climatic patterns are almost opposite: the rainy season is dragging up to this month January (normally, dry season starts in December). The impact on the pineapple crop is more neutral; Mekong Delta farmers are used to managing excess water, digging draining trenches in their fields (see below picture). The lack of sun and heat delayed the maturation of the fruit and the campaign is expected to start from 20th of February. Predicted yields are quite standard for the region, without being outstanding (around 30-40 t/ha). Consequentially the market calmed down and prices decreased, although remaining high compared to historical data. We start the season with stronger confidence, hoping for the dry period to arrive soon and bring sugar and size to our fruits. In addition, due to salinization, we can see that there is a movement from rice farming into pineapple cultivation as the growth of Pineapple in saline soils is better than rice.
We do hope in the nearby future the growth of Pineapple will continue to grow.
Over Christmas we saw typhoon ‘Nock-Ten’ hit the Philippines. This was the strongest typhoon to hit over the holiday period in fifty years. There has been damage to trees in the Luzon area which will likely result in short supply of coconut products at least till the middle of the year or later. It will take several weeks for the supply of raw nuts to dip but already prices are have started to strengthen.
Questions that will determine prices during 2017:
Back to the Nock-Ten typhoon; desiccated prices held firm over the holidays although most suppliers were withdrawn because of the typhoon. It will take a few weeks for the damage to the trees to reflect in a dip in supply of raw nuts. It is likely as companies return to work they will pick up any shorts for the first period. This period could sell out rather quickly as shippers reduce production expectations to reflect low raw nut supply.
Netra Agro sources coconut products like aseptic coconut milk, aseptic coconut water, coconut water concentrate and IQF Coconut dices and IQF Coconut chunks in Indonesia, Thailand, Sri Lanka, Philippines and Vietnam.
In Vietnam the price of raw material Pineapple has increased with 25 to 30% compared with May/June 2016 due to the continuing shortage of Pineapple supply as a consequence of salinization.
The reason is that due to the El Nino phenomenon, starting from 2014 until mid 2016, the yearly average temperatures went up with 1 to 1,5 degree Celsius and that rainfall last year has degreased with an average of 30-50%.
Meanwhile, the total flow of the Mekong River that runs to Mekong Delta is less than 20 to even 50%, the lowest level in history. Therefore, the effect salinization is become becoming more dangerous.
Netra Agro pineapple suppliers are not offering for prompt shipment at the moment. But we still have some limited stocks available and there is limited possibility to ship product as of November / December.
Although it is too early to quote citrus prices, Netra Agro suppliers have informed the Spanish crop citrus (orange, mandarin & lemon) is looking considerable good compared with the disastrous last years’ crop. It will not be the best year ever, but things are not looking bad either. “Right now we could use some more rain, but usually we have some during September, October & November” according one of our suppliers.
Netra sources aseptic & frozen lemon cells, frozen or aseptic lemon juice and aseptic or frozen mandarin juice. Also our IQF Lemon peel & IQF Lime peel are originating Spain.
Although an apparent stable start of the mango season in India, the availability of raw material Totapuri mango is exacerbating. Less fruit is available which resulted in price increases for fresh mango by 25% as compared to the last year crop levels. And as we are approaching end of the processing season the likelihood of price easing is very low. Moreover product availability most likely will be an issue as shortage is looming.
If you have not covered your needs for IQF Mango dices or aseptic puree or Totapuri mango concentrate yet, it is recommendable to do so soon.
2016 has showed us a better crop apricot in Greece compared with last year. This does not go for the aseptic apricot puree and aseptic puree concentrate from Spain.
We just received our first truck IQF Apricot 10×10 from Greece at our warehouse Frigo Breda. Check with us for prices spread delivery until new crop 2017.