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° 06/09

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)

Old litchis from Madagascar. « Blown » , soft fruits with oxidations. Litchis from Madagascar. Boxes at the bottom of pallet with smashed fruits.

SUMMARY OF ARRIVALS BY SEA
(In pallets)

Madagascar stand at the « Fruit Logistica » in Berlin.

GENERAL INFORMATION

T he marketing campaign for litchis from Madagascar is coming to an end. Only very small volumes of fruits remain available on the different European markets. Sales are more and more difficult. Operators that still have some fruits are doing their best to clear their stocks generally at open prices. The deterioration of fruits in terms of quality no longer allows operators to set a market price especially considering that the demand for the fruit is non existent. Operators have moved to other commodities and the risk of buying litchis considering the present quality of fruits limits even more the demand for the fruit. Sales no longer represent the reality of the trade.
Already, the 2008/2009 marketing campaign appears to have been gloomy. Supplies much more important than the European markets’ capacity, a rather average quality of fruits, the effects of the economic crisis and strong competition between operators are as much elements that have strongly disrupted the marketing of fruits.

The first estimates in terms of volumes for the ending campaign are as follow (in tons) :

Litchis from Madagascar with mould stains.

EUROPEAN MARKETS

Germany : Clearance of the last lots available with sales done as they come and depending on the quality of fruits. Some lots not very representative of South Africa sold selectively.

Belgium : End of the marketing campaign.

Spain : End of the marketing campaign.

France : This week marks the end of the marketing campaign for litchis from Madagascar even if there still are some small lots available. Sales are no longer representative. The demand for the fruit is extremely weak and this affects the sales of the last lots for which quality is continuing to deteriorate. The last operators that still have some fruits are clearing their stocks and trying to sell the remaining fruits to the best.
If prices for fruits of satisfactory quality are still around 0.50€ to 0.80€/kg, several sales are done at much lower prices. The mixed quality of fruits is also acting as a sharp brake to the sales of the last lots. Retailers no longer show an interest in selling such low quality fruits even at clearance prices. There still are some litchis from Madagascar in some supermarkets but in very limited volumes. Prices done are around 1.50€ to 2.00€/kg.
Very small volumes of fruits from South Africa (Red Mc Lean variety) not so appreciated on the French market. There is a general weariness towards litchis and almost all the operators consider that the campaign is finished. Litchi will resume its position as an « exotic » with supplies from Thailand probably in April after a substantial shortage.

Italy : End of the marketing campaign.

Netherlands : End of the marketing campaign for litchis from Madagascar. The remaining lots are unsalable considering the deterioration of the quality of the fruits. Very small volumes of fruits from South Africa (Red Mc Lean variety) that are difficult to sell.

United Kingdom : Little change compared to last week on the British market. The marketing campaign for litchis from Madagascar is coming to an end. There are practically no more litchis on the wholesales markets. The remaining lots were sold at the beginning of the week. Lots of satisfactory quality were sold on the basis of 1.70€ to 2.30€/kg. Lots of lesser quality were sold at open prices. It would seem that there still are no Red Mc Lean fruits available on the market.

Exchange rates (february 2009) :

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