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° 04/08

French Version

ORIGINS	GERMANY		BELGIUM		SPAIN		FRANCE		HOLLAND		UNITED KINGDOM
Weeks	03	04	03	04	03	04	03	04	03	04	03	04
Air	-	-	-	-	-	-	-	-	-	-	-	-
Mauritius (b)	-	-	-	-	-	-	-	-	-	-	-	-
Mauritius (s)	-	-	-	-	-	-	-	-	-	-	-	-
Madagascar (b)	-	-	-	-	-	-	-	-	-	-	-	-
Reunion (b)	-	-	-	-	-	-	6.00 - 6.50	6.00 - 6.50	-	-	-	-
South Africa (s)	-	-	-	-	-	-	-	-	-	-	-	-
Mer	-	-	-	-	-	-	-	-	-	-	-	-
Madagascar	1.20 - 1.50	1.20 - 1.35	1.20 - 1.50	1.20 - 1.40	1.50 - 1.75	1.50	1.20 - 1.40	1.00 - 1.50	1.20 - 1.40	1.20 - 1.50	1.45 - 1.65	1.20 - 1.40
South Africa	1.50	-	1.70 - 2.20	1.70 - 2.20	-	-	1.60 - 2.20	1.50 - 2.20	1.75 - 2.00	1.80 - 2.10	2.00 - 2.30	1.90 - 2.10

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 marketing campaign for litchis from Madagascar has entered its final phase. The volumes of fruits still available consist in only in small lots. The last lots of fruits still available should be finished in the coming two weeks. Several importers have already finished their stocks of fruits. Litchis from South Africa are progressively replacing fruits from Madagascar on the different European markets. Volumes from South Africa are however still very limited.

These fruits are having difficulties finding their gap on the markets because of the presence of remaining fruits from Madagascar, of the irregularity of supplies and also because of their high cost price. This week there was a slight drop in prices for fruits of both origins and/or a widening of the price trend that reveals the uneven quality of fruits available.

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

Estimates of incoming volumes by Air
(in tons) 

EUROPEAN MARKETS

Germany : Stable demand for litchis. The marketing of fruits from Madagascar is continuing and should take end next week. Fruits available are of rather good quality.

Belgium : No change on the market in regard of the situation prevailing last week. Fruits from Madagascar are progressively disappearing from the market and being replaced by fruits from South Africa.

Spain : Stable market with an upturn in the demand from some retailers. Although the quality of fruits from Madagascar is deteriorating with time, there still are some lots of good quality that answer to high quality standards.
France : The market is rather stable. This week, several operators have stopped marketing litchis from Madagascar. The stocks of fruits from the last container vessels are coming to an end. The quality of fruits from Madagascar is becoming more and more an issue. Several lots of ageing fruits (indurations of shells, dull aspect of fruits, « blown » fruits, brown like coloured fruits) are more and more difficult to sell operators are often obliged to considerably reduce their price in order to make sales. On the other hand there still are some lots of good quality on the market, with supple fruits presenting a good colour and good eating qualities. This difference in quality shows at selling price levels with price trend that are widening. The marketing of fruits from Madagascar should continue next week and maybe the week after for the last lots. The demand on the local market is weak but operators compensate this lack of sales with the high demand coming from other European markets mainly those of the North.

The marketing of fruits from South Africa is more complicated. The fruits received are mixed in terms of quality and often prove to be very fragile obliging operators to make quick sales synonym of weak prices. The competition from the lots of good quality fruits from Madagascar with good coloured fruits of good eating quality does not ease things. Some lots of mediocre quality are sold on lower basis than those given above. There are progressive traces of mould on some lots of fruits from South Africa. End of the campaign for « fresh » litchis from Reunion with the last lots received this week. Prices for these fruits are still stable. Prices noted at retail level this week are around 2.50€/kg in supermarkets.

Italy : End of the campaign for fruits from Madagascar. There still are a few lots but sales are not very typical.

Holland : Difficult situation for litchis from Madagascar with fruits of uneven quality that need to be re sorted before being sold. Prices given above are for fruits of good quality. Limited market for South African fruits that are under pressure from competing fruits from Madagascar. There are more and more quality issues on these fruits with development of mould stains. Some lots are sold starting from 1.00-1.25€/kg.

United Kingdom : Fluid situation on the UK market. The supplies are still mainly coming from Madagascar and from South Africa in lesser quantities. Volumes of fruits from Madagascar have dropped and some operators have already stopped supplying from Madagascar and shifted to South Africa for supplies. Prices are slightly dropping because of quality issues. The demand is still good and could even slightly increase for the coming Chinese New Year. Fruits from South Africa are more and more appreciated by retailers for their size and homogeneity. In supermarkets, the first lots of fruits from South Africa will be available next week. Operators hope to finish their lots of fruits from Madagascar by then. On the wholesale markets, prices are still very good with litchis from Madagascar selling around 2.00€/ kg and those from South Africa selling around 2.35€ to 2.70€/kg according to size. Taking into account the actual demand for fruits, there could be a shortage in the supplies next week especially considering the fact that vessels from South Africa are delayed.

Exchange rates (january  2008) :

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

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