Weeks N°: 45/08 - 46/08 - 47/08 - 48/08 - 49/08 - 50/08 - 51/08- 52/08 - 01/09 - 02/09 - 03/09 - 04/09 - 05/09 - 06/09

LITCHI LETTER - Week N° 02/09

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)

Litchis from Madagascar sold in 1kg bags in supermarkets.

SUMMARY OF ARRIVALS BY SEA
(In pallets)

Standard quality litchis from South Africa (size XXL).

GENERAL INFORMATION

Strong deterioration in market conditions for litchis from Madagascar this week. The interest in the fruit observed during the end of the year celebrations is dropping down steadily. Consumers are now more interested in buying traditional commodities.

The beginning of winter sales also contributes to spreading shopping needs to other consumer goods. In addition, the strong decrease of quality observed on fruits from Madagascar accentuates the lack of interest of consumers in the fruit. The drop in prices however helps maintain a certain level of sales , even though they are declining more or less rapidly depending on the markets.

The operators are now relying on the Chinese New Year to boost interest for the fruit. However, considering the circumstances, if sales are to be punctually more dynamic because of this coming celebration, they will be again on a down trend once the Chinese New Year will have passed. Sales for Madagascar litchis will certainly be limited in terms of prices and depend on the evolution of the quality of fruits available.

The lack of proportion between the volumes shipped and the market’s capacity to absorb these volumes considering the actual general crisis, reopens the Debate about a better accordance between demand and supplies for a fruit that is more and more considered as only festive.

Estimate of incoming volumes
(in tons) 

Special offer for litchis from Madagascar in a supermarket.

EUROPEAN MARKETS

Germany : Drop in litchi sales this week with prices on a down trend. The demand is also declining, this situation is increased by the growing quality problems noticed on some lots.

Belgium : The demand is more and more limited and affecting sales. The mixed quality of fruits complicates even sales for the remaining fruits.

Spain : No information this week.

France : Very slow market mainly because the demand is dropping. Sales that are still done are made at very difficult conditions. In addition to the drop of the demand are also frequent quality issues. Several containers arrived in bad conditions and sometimes important volumes of incoming supplies must be set aside. The other European markets are progressively closing down and can no longer be considered as interesting outlets. Prices continue to decline and rare now are sales done above 1.00€/kg. Average sales for fruits of satisfactory quality are done around 0.80€-.090€/kg. Important volume of « old » fruits are sold at lower prices. Special offers are being set up in stores to help clear stocks that are still important and estimated to be between 3000 and 4000 pallets.
On the wholesale market, several lots of litchis from Madagascar of poor quality are sold at low prices between 0.60€ and 0.80€/kg and sometimes less. The atmosphere is particularly gloomy on the markets and the rapid deterioration of the quality of fruits is not helping in improving sales. The preparations for the Chinese New Year represent an opportunity for litchis from Madagascar especially considering the absence of competition from South African fruits present in limited volumes.
The limited volumes of fruits from South Africa available manage to achieve better prices, but prices observed remain very mixed depending on the size and the quality of fruits. Indeed, fruits from this origin are mixed with a big difference in colour size and shelf life is also an issue depending on lots. Bad end of campaign for on stem litchis from the Reunion with an important deterioration of the quality of fruits. Most operators have momentarily interrupted their supplies for this reason. The last lots are sold at declining prices considering their
poor quality (oxidation, and stains on fruits).

Italy : No information this week.

Netherlands : Stable prices for fruits of satisfactory quality. Some sales were done at lower prices starting from 1.00€/kg (mainly for old fruits or fruits presenting some quality defects). Small sales of South African fruits with higher level of prices especially for XXL size fruits.

United Kingdom : Reduced Litchi supplies on the market this week. On the wholesale market, supplies are mainly composed of litchis from Madagascar, these fruits are often mixed in terms of quality. Fruits of satisfactory quality are sold between 2.00-2.20€/kg.
Little enthusiasm for litchis in supermarkets with reduced shelf space for the fruit. The drop in supplies at a moment when the demand could be more dynamic in regards of the Chinese New Year could impact positively on the demand.
The almost absence of fruits from South Africa contributes to reinforcing this situation that could well benefit to litchis from Madagascar. Multiples are buying litchis from Madagascar around 2.35€-2.50€/kg.

Exchange rates (january 2009) :

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