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° 03/08

French Version

ORIGINS	GERMANY		BELGIUM		SPAIN		FRANCE		HOLLAND		UNITED KINGDOM
Weeks	02	03	02	03	02	03	02	03	02	03	02	03
Air	-	-	-	-	-	-	-	-	-	-	-	-
Mauritius (b)	-	-	-	-	-	-	-	-	-	-	-	-
Mauritius (s)	-	-	-	-	-	-	-	-	-	-	-	-
Madagascar (b)	-	-	-	-	-	-	-	-	-	-	-	-
Reunion (b)	-	-	-	-	-	-	6.00	6.00 - 6.50	-	-	-	-
South Africa (s)	-	-	-	-	-	-	-	-	-	-	-	-
Mer	-	-	-	-	-	-	-	-	-	-	-	-
Madagascar	1.30 - 1.50	1.20 - 1.50	1.00 - 1.30	1.20 - 1.50	1.20 - 1.50	1.50 - 1.75	1.20 - 1.50	1.20 - 1.40	1.00 - 1.50	1.20 - 1.40	1.35 - 1.65	1.45 - 1.65
South Africa	-	1.50	1.80	1.70 - 2.20	-	-	1.80 - 2.30	1.60 - 2.20	2.00 - 2.25	1.75 - 2.00	2.00 - 2.40	2.00 - 2.30

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 navires	9-18/12/2007	17200
Tamatave 24/11	Ocean Trader	-	66
Tamatave 05/12	Atlantic Trader	Rotterdam	2700
Tamatave 11/12	Olivia	-	836
Tamatave 18/12		-	399
Tamatave 24/12		-	37

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

GENERAL INFORMATION

The loss of interest in the fruit continues affecting sales that are very slow. The quality of fruit from Madagascar is more and more irregular. Lots of satisfactory quality continue to sell at rather stable prices while irregular lots of poor quality are sold on the basis of prices lower than those given below. This week marks the end of the arrival of fruits from Madagascar by container. Fruits should continue to be marketed until the beginning of February. Already several operators are on the way of putting an end to their campaign.

The volume of incoming fruits from South Africa is still limited. Sales for these fruits were again difficult this week, mainly because of the presence of cheaper fruits from Madagascar and also because of the general loss of interest in the fruit. Unlike last year, there is no specific market were these fruits are best sold.

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

Estimates of incoming volumes by Air
(in tons) 

EUROPEAN MARKETS

Germany : The last containers of litchis from Madagascar were received at the beginning of the week. The demand is still deteriorating with clients mostly interested by fruits packed in 2kg boxes.
Sales are slow now that the major supermarket chains have stopped promoting the fruit. Litchis has resumed its “natural position” as an exotic and left the group of fruit that were regularly on the sales shelf. People importing and selling the fruit have considerably increased their profit margin, this has had an impact on sales that are now very slow. On the whole the price trend is still rather steady for fruits of satisfactory quality. Small volumes of fruits from South Africa.

Belgium : Limited demand for litchis. The reduction of volumes benefits to the good quality fruits from Madagascar for which prices are steady. Increase in the volumes of fruits from South Africa, the price trend for these fruits widens according to the size and the quality of the fruits sold. Buyers are more and more interested in South African fruits.

Spain : Uptrend in prices this week following the reduction of volumes available. Fruits packed in 2 kg boxes (less available).

France : Steady market with a demand that is still dropping. Fruits from Madagascar sell slowly at rather stable prices. High prices seem the most affected, sales done at 1.50€/kg are now very rare. The quality of fruits from Madagascar is more and more uneven and ageing fruits are sold along side lots of good quality. This is why if the average selling prices are as given above, nevertheless there are several sales done at much lower prices. There is an increasing number of soft fruits or fruits with shell indurations. There are also increasing developments of mould on fruits, but these are not really seen on the wholesale markets because most of the fruits are sorted out before being put on the markets. The major part of Madagascar fruits sold go to supermarkets or to markets outside of France. The German and the United Kingdom markets are still the main outlets for the fruits despite the reduction of the demand in these countries for the fruit. Some supermarket chains are still doing promotion operation on litchis in order to favour the flow of sales. At retail level, the average selling price in supermarkets is around 2.50€/kg. Some promotion operations are done are lower prices (1.95€/kg).

There are more and more fruits coming in from South Africa. These fruits are mainly sold on the wholesale markets. There is a strong drop in prices for these fruits that are rather mixed in terms of quality. . Competition with fruits from Madagascar is fierce and contributing to the price reduction for South African litchis. The size of fruits is good on the whole, but the colour of fruits, even if in progress, is still very mixed and uneven depending on lots. Fruits from South Africa seem rather fragile with a limited shelf life. The number of soft fruits (over ripe fruits) is increasing, on these fruits there are also some traces of mould.
Progressive end of the campaign for fresh litchis from The Reunion. The volumes marketed are rather limited and the last lots of fruits are expected for next week. Fruits from this origin are more and fragile which hastens the end of exports.

Italy : The marketing campaign of litchis from Madagascar is coming to an end in Italy. The average selling price is around 1.50€ and prices are on a down trend compared to last week. The drop in prices is due to a loss of interest in the fruit by consumers and by a drop in the quality of fruits.

Holland : Prices for litchis are stable this week compared to those done last week. There are still some sales done at good prices for lots of good quality. On the other hand, some lots of poor quality are sold at prices lower than those given above. Strong drop in prices for South African fruits still competing with litchis from Madagascar that more coloured.

United Kingdom : Slight drop in the demand on the UK market mostly noticed on the wholesale markets. Fruits available come from Madagascar and South Africa. There seem to be less fruit coming in from South Africa nevertheless more and more operators are shifting to this origin for supplies. This trend should be confirmed next week. Prices done on the wholesale markets are around 1.36€- 1.70€/kg for fruits from Madagascar while fruits from South Africa are sold around 2.00-2.30€/kg because they are more regular in terms of quality. In Supermarkets, the fruits from Madagascar are still the main ones sold, However, multiples are organising a shift in supplying origins this should benefit to South African growers.

Exchange rates (january  2008) :

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

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