Weeks N°: 46/07 - 47/07 - 48/07 - 49/07- 50/07 - 51/07- 52/07- 01/08 - 02/08 - 03/08 - 04/08 - 05/08 - 06/08

LITCHI LETTER - Week N° 01/08

French Version

ORIGINS	GERMANY		BELGIUM		SPAIN		FRANCE		HOLLAND		UNITED KINGDOM
Weeks	52	01	52	01	52	01	52	01	52	01	52	01
Air	-	-	-	-	-	-	-	-	-	-	-	-
Mauritius (b)	-	-	-	-	-	-	-	-	-	-	-	-
Mauritius (s)	-	-	-	-	-	-	-	-	-	-	-	-
Madagascar (b)	-	-	-	-	-	-	-	-	-	-	-	-
Reunion (b)	-	-	-	-	-	-	6.00 - 7.00	6.00 - 6.50	-	-	-	-
South Africa (s)	-	-	-	-	-	-	-	-	-	-	-	-
Sea	-	-	-	-	-	-	-	-	-	-	-	-
Madagascar	1.00 - 1.20	1.30 - 1.70	1.00 - 1.40	1.30 - 1.50	1.25 - 1.50	1.30 - 1.50	1.00 - 1.40	1.20 - 1.40	1.10 - 1.25	1.10 - 1.50	0.70 - 1.00	1.35 - 1.60
South Africa	-	-	-	-	-	-	2.00 - 2.50	2.00 - 2.50	-	-	-	-

Price in Euros per kg - (b) : on stem/fresh ; (s) : +SO2 (Indicative and average price given by operators most representative of the industry for fruits of satisfactory quality)

Hereafter is an estimate of litchis exports from Madagascar by sea freighted containers. These volumes do not take to account volumes forwarded through transhipments by other lines.

SUMMARY OF ARRIVALS BY SEA
(In pallets)

INCOMING TONNAGES				FORECASTED TONNAGES
Departure Source	Vessels	Dates - Ports	Tonnage	Departure Source	Vessels	Dates - Ports	Tonnage
Total conventionnal	5 vessels	9-18/12/2007	17200	Tamatave 11/12	Olivia		836
Tamatave 24/11	Ocean Trader	-	66	Tamatave 18/12			399
Tamatave 05/12	Atlantic Trader	Rotterdam	2700	Tamatave 24/12			37

The above mentioned indications are subject to confirmation. Note: Mrs : Marseille / K : Koper / VD : Vado / SN : St Nazaire.

GENERAL INFORMATION

Strong drop in litchi consumption this week. This fallback in the demand was predictable especially after the end of the year celebrations. However prices are rather firm for fruits of good quality. The situation on the market is nevertheless complicated considering that fruits of satisfactory quality continue to sell while the proportion of bad quality fruits continues to increase. Indeed, the remaining fruits from the conventional vessels are old fruits of uneven quality for which selling prices are lower than those given here after. If the reaming stocks of fruits are rather weak, they nevertheless continue to affect the market by slowing down sales.

The first big arrival of fruits sent by containers was received last weekend, but fruits were only available on markets starting from Wednesday 2nd January. The limited number of working days this week also had an impact on sales. It is only next week that all the European markets will have all received the newly arrived fruits.

The South African litchis are present in limited volumes on the European markets. No doubt that considering the weakness of the incoming fruits from Madagascar operators from South Africa will soon increase their exports.

Estimates of volumes received by air this week are as follows:

Estimates of incoming volumes by Air
(in tons) 

EUROPEAN MARKETS

Germany : Clear drop in the demand this week. Prices nevertheless stay firm for good quality fruits. However the uneven quality of fruits impacts on prices. Lots of poor quality being sold at open prices.

Belgium : Prices were up this week following the reduction of incoming fruits and a more limited demand. The difference in quality for litchis from Madagascar is becoming more obvious. Some lots of bad quality fruits sell at prices starting from 1.00€/kg. Litchis packed in 2kg boxes sell better with a difference of about 0.10 to 0.15€/kg.

Spain : The decrease in the offer corresponds to a weakness in the demand. Prices in such circumstances stay stable.

France : Two-tier market according to the quality of proposed goods. Fruits of satisfactory quality sell at firm prices mainly because of the reduction of incoming fruits. Some sales are even done around 1.50€/kg. On the other hand fruits of lesser quality (old fruits) are sold at prices lower than those mentioned above. The last pallets of fruits coming from conventional vessels sell slowly because of quality issues (oxidation of the shell, mould…) and affect sales on the whole. These stocks of fruits should be cleared in the coming days, but their low selling price should have a negative impact of the actual average selling price of fruits. The first lots of container fruits were received during last weekend and were marketed rather easily even though sale flows were slower than during the end of the year celebrations. Sales towards other European markets even if they are still rather active are beginning to slow down. The supermarkets are still the main outlets for fruits from Madagascar. However last week’s increase in price has been passed on to prices at retail level that were around 2.50- 2.90€/kg depending on the supermarket chains. The increase of the price at retail level is also an element explaining the reduction in the demand, consumers having gotten used to the attractive prices done during the end of the year celebrations.
Limited supplies from South Africa. Delayed vessels have also disrupted sales for fruits coming from this origin. The weak volumes available were sold at prices more stable than those done last week. The big size of fruits attracts customers that are more demanding. On the other hand, the lack of colour of these fruits is still an issue.

Clear reduction in volumes of fresh litchis from Reunion. This origin’s campaign should come to an end in a week or two. Prices for these fruits are stable for good quality fruits, but several lots are sold at much lower prices (4.00€/kg) because of evolving quality issues (oxidation stains, and rot).

Italy : Strong drop in the demand for the fruit during the first week of the year. The reduction in the offer allows prices to slightly increase around 1.50-1.60€/kg for good quality fruits.

Holland : Selling prices for litchis vary greatly according to the quality of proposed fruits. The last lots of fruits from conventional vessels are often rejected because of quality issues. Some selling prices are done below 1.00€/kg. The first fruits from South Africa are expected for next week.

United Kingdom : The increase in price observed last week on the markets of the continent finally showed on the UK market, with prices moving from 1.35€/kg at the beginning of the week to 1.60€/kg at the end of the week. The price increase is mainly due to the reduction of the offer coming from Madagascar, main supplying origin of the European market. On the wholesale markets, litchis from Madagascar sell at high prices (2.50-3.00€/kg) for good quality fruits. On the other hand, remaining lots of conventional vessels are of very uneven quality with important mould issues. These contentious lots are sold at “open” prices. The first lots of container fruits were expected for the end of this week. If the quality of fruits is satisfactory operators forecast that prices should stay high and even slightly increase next week with prices around 1.70-1.80€/kg. Selling prices at supermarket levels are more around 2.15-2.35€/kg (delivered). Fruits sold through these channel are often repacked to fit consumer’s needs. The rather good price level of Madagascar fruits delays the arrival of South African fruits that are more expensive. There are however some fruits from that origin on the market. Future incoming fruits from South Africa are said to be very big in size with the major part of fruits being of size XXL.

Exchange rates (january  2008) :

1 EURO
United Kingdom	0.7438 GBP
Madagascar	2 621.54 MGA (Ariary)

Download:

Version PDF