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° 05/08

French Version

ORIGINS	GERMANY		BELGIUM		SPAIN		FRANCE		HOLLAND		UNITED KINGDOM
Weeks	04	05	04	05	04	05	04	05	04	05	04	05
Air	-	-	-	-	-	-	-	-	-	-	-	-
Mauritius (b)	-	-	-	-	-	-	-	-	-	-	-	-
Mauritius (s)	-	-	-	-	-	-	-	-	-	-	-	-
Madagascar (b)	-	-	-	-	-	-	-	-	-	-	-	-
Reunion (b)	-	-	-	-	-	-	6.00 - 6.50	-	-	-	-	-
South Africa (s)	-	-	-	-	-	-	-	-	-	-	-	-
Mer	-	-	-	-	-	-	-	-	-	-	-	-
Madagascar	1.20 - 1.35	1.20 - 1.50	1.20 - 1.40	1.30 - 1.75	1.50	1.50 - 1.80	1.00 - 1.50	1.10 - 1.50	1.20 - 1.50	1.50 - 1.60	1.20 - 1.40	1.40 - 1.50
South Africa	-	-	1.70 - 2.20	1.40 - 2.50	-	2.00	1.50 - 2.20	1.50 - 2.50	1.80 - 2.10	1.70 - 2.20	1.90 - 2.10	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 is progressively coming to its end. The fruits still available (mainly stocks) sell rather well considering the general gloomy atmosphere on the European markets for all commodities. Sales are regular and are not under pressure especially considering the weakness of volumes available. The overall good quality of litchis from Madagascar is still their best selling argument. Surprisingly there are still some fruits that seem fresh with a good and attractive colour.

On the other hand, litchis from South Africa are having some trouble finding there place on the market mainly because of their high cost but also because of their lack of colour and visual attractiveness.

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

Estimates of incoming volumes by Air
(in tons) 

EUROPEAN MARKETS

Germany : Steady market for litchis from Madagascar with prices similar to those registered last week. There is a slight drop in the price trend mainly due to ageing fruits although the quality is still satisfactory.

Belgium : Steady market for litchis from Madagascar with a slight uptrend in prices mainly due the fact that there are less fruits available. The price trend stay large depending on the quality of fruit that is still deemed satisfactory. The price trend for South African fruits is wider, and shows that fruits from this origin are very mixed in terms of quality.

Spain : There are not much fruits available on the market and the price trend is on an uptrend. The overall good quality of litchis from Madagascar still available favours sales. Some lots of lesser quality are sold at lower prices. The end of the marketing campaign for Madagascar litchis opens a new “gate” for South African fruits that are much more expensive. The presence of less expensive litchis from Madagascar disturbs the marketing of fruits from other origins that have higher cost prices.

France : Steady market for Madagascar litchis of good quality that continue to sell well. The low part of the price trend given above applies to ageing fruits but of satisfactory quality while the high level of the price trend applies to litchis of high quality. The good quality of some lots (good colour, fresh looking aspect as well as good taste) helps to keep clients interest in the fruit in supermarket. The fact that litchis from Madagascar look more fresh gives them an advantage over to competing fruits that are mixed in colour and irregular in terms of taste. Litchis from Madagascar are best sold in supermarket especially in regard of the coming Chinese New Year even though their price is slowly increasing.

On the other hand, fruits from South Africa are most found on the wholesale markets with wide price trend depending on the colour, size and quality of fruits.
French operators also find some new outlets on other European markets where litchis from Madagascar are still very appreciated for their quality and cheaper price in regard of competing fruits from South Africa.

Italy : Some sales are still being done but they are not very typical.

Holland : Gloomy market for all commodities. Sales for litchis from Madagascar are weaker and weaker with rather high prices for good quality lots. Fruits from South Africa are more mixed in terms of quality which seems to explain their large selling price trend.

United Kingdom : Sales are still good on the UK market with a reduced supply of litchis from Madagascar and South Africa. Prices stay on the same basis as last week. On the wholesale markets, the fruits available coming from Madagascar are still of good quality with prices holding around 2.00€/kg. On the other hand, fruits from South Africa even though they are well sized see their prices stabilise around 2.35€/kg. Prices above this level are much more rare. In supermarkets, supplies have switched from Madagascar to South Africa. However prices have not moved and stay around 1.45€-1.65€/kg which is rather weak for the origin. The last lots of fruits from Madagascar are still disturbing the marketing of fruit from South Africa. Operators forecast a slight increase in prices for South African litchis by next week.

Exchange rates (february  2008) :

1 EURO
United Kingdom	0.7434 GBP
Madagascar	2 624.18 MGA (Ariary)

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