Weeks N°: 47/09 - 48/09- 49/09- 50/09- 51/09- 52/09- 53/09- 01/10- 02/10- 03/10- 04/10- 05/10- 06/10- 08/10

LITCHI LETTER- Week N°01/2010 - 04 to 08 january 2010

French version

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)

SUMMARY OF ARRIVALS BY SEA
(In pallets)

Ageing litchis from Madagascar. Fruits are dull and of mixed colour. Indurations of the shell and of the fruits and/or soft fruits.

GENERAL INFORMATION

The serenity that so far was prevailing on the litchi market has started to fade off starting from the beginning of the year. There is a serious deterioration in market conditions this week with prices for litchis from Madagascar that have collapsed. The first ten days of January have always been a difficult period in the fruit and vegetable business. Consumers cut back on their food expenses preferring to buy other goods of consumption. In addition, the bad weather conditions that have affected several European regions have disrupted the trade, affecting supplies as well as deliveries. The bad weather has also had an impact on sales with less people in supermarkets. The rather high level of prices since the beginning of the marketing campaign also contributed to slowing down consumption. Prices at retail level (between 3.00€ and 4.00€/kg) being considered as too high by consumers. Considering these elements, a drop in prices was foreseeable after the end of the year celebrations. This drop in prices participating in the revitalisation of sales and helping clear the stocks of container fruits available from the end of 2009 to the middle of January 2010. The rather limited supplies of litchis forecasted for January give hope that the prices should soon stabilize in the coming weeks. Fruits from South Africa delivered in limited volumes are also affected by the down trend of prices. Prices for these fruits are dropping but not as strongly as they are for litchis from Madagascar. Less supplies and better size of the South African litchis are the main reason why prices for these fruits are still good.

Estimate of incoming volumes
(in tons) 

EUROPEAN MARKETS

Germany : Strong drop in prices for litchis from Madagascar. Some lots with quality problems are sold occasionally at lower prices than those indicated above in order to avoid over flooding the market with fruits evolving rapidly.

Belgium : Like what is observed on the other European markets, prices are dropping for litchis from Madagascar. There is a lot of pressure on sales and all sorts of prices are made for litchis. However, if some sales are done at cheaper prices, most of the sales are done at prices indicated above.

Spain : Litchi sales were very difficult this week. Supplies available are still very important but the main problems lies in the demand that is very weak. The pressure on sales leads to a significant drop in prices.

France : Significant drop in prices on the litchi market this week. This drop is mainly due to the fact that the demand for the fruit is weaker following the end of the year celebrations. This drop is all the more significant that bad weather conditions in Europe have affected fruit deliveries. In addition, several other effects have hastened the decline of prices. The high level of prices at retail level, the lack of promotion operations, the high competition leading to a drop of prices as well as the arrival of some lots of poor quality have all had a negative impact on the trend. Considering the circumstances, supplies expected in January, even if they are not important compared to the size of the European market, will nevertheless increase the pressure on sales and thus lead to some excesses. If most of the sales are done at prices indicated above, some sales are however done at lower prices mainly for lots presenting quality defects. Operators hope that the present drop in prices will help boost the demand
for litchis. The set up of promotion operations, in supermarkets in the coming weeks, should help in clearing fruits in stock. South African fruits are also under the competition from litchis from Madagascar. Prices for these fruits are also on a down trend even if the drop is less important. Fruits from this origin are mainly sold through wholesale markets. Strong shortage in supplies of fresh litchis from the Reunion allowing a stabilisation of prices. Fruits from this origin must be sold quickly because of their short storage capacity.

Ageing litchis from Madagascar. Squashed fruits and presenting mould stains.

Italy : The Italian market is progressively closing itself to litchis with very little sales this week.

Netherlands : Down trend in prices with more competition for Madagascar litchis with the availability of South African fruits.

United Kingdom : The bad weather conditions have considerably affected sales on the British market at the beginning of 2010. Litchis from Madagascar and South Africa share market parts with a slight predominance for the latter. Litchis from both origins are sold on the wholesale market between 2.50€ and 2.80€/kg. Although some sales are done around 3.00€/kg for South African fruits that are of better size. Limited quality issues (mould stains) seem to be affecting sales of litchis from Madagascar. In supermarkets, litchis repacked in 250g punnets are sold on the basis of 1.70€/punnet.

Exchange rates (Janvier 2010) :

Download:

Version PDF