Weeks N°: 47/09 - 48/09- 49/09- 50/09- 51/09- 52/09- 53/09- 01/10- 02/10- 03/10- 04/10- 05/10- 06/10- 08/10

LITCHI LETTER - Week N° 47/09 - 23th to 27th November 2009

French version

ORIGINS	GERMANY		BELGIUM		SPAIN		FRANCE		HOLLAND		UNITED KINGDOM
Weeks	47	48	47	48	47	48	47	48	47	48	47	48
Air	-	-	-	-	-	-	-	-	-	-	-	-
Mauritius (b)	-	-	-	-	-	-	10	6.50- 8.50	-	-	-	-
Mauritius (s)	-	-	-	-	-	-	9.00-10	5.50- 7.00	-	-	-	-
Madagascar (s)	-	-	6.00	5.00- 6.00	6.50	5.00-6.00	6.00	4.80- 6.00	6.75	5.50- 6.00	-	-
Madagascar (b)	-	-	-	-	-	-	10		-	-	-	-
Reunion (b)	-	-	-	-	-	-	12-13	8.00- 10	-	-	-	-
South Africa (s)	-	-	6.00	5.00- 6.00	-	-	6.50- 7.00	5.00- 6.00	5.00- 6.00	5.50- 6.00	-	6.00- 6.30
Sea	-	-	-	-	-	-	-	-	-	-	-	-
Madagascar	-	-	-	-	-	-	-	-	-	-	-	-
South Africa	-	-	-	-	-	-	-	-	-	-	-	-

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)

SUMMARY OF ARRIVALS BY SEA
(In pallets)

INCOMING TONNAGES				FORECASTED TONNAGES
Departure Source	Vessels	Dates - Ports	Tonnage	Departure Source	Vessels	Dates - Ports	Tonnage
				Tamatave 19/11	Seal Rickmers	16/12 Rot
				Tamatave 26/11	Ludwig Schutle	23/12 Rot
				Tamatave	Ipanema	Fos	3 700
				Tamatave	Hansa Bremen	Vlissingen	5 500

 

GENERAL INFORMATION

Incoming supplies of litchis strongly progressed this week following exports from all the origins of the Indian Ocean and even if the volumes of these supplies differ from one origin to the other, they nevertheless in total represent important volumes. This rapid increase of volumes lead to a drop in prices. On the whole the quality of fruits received is deemed satisfactory. However in general, litchis are of small size, this could be due to the bad weather conditions during the growth period of the fruits in most production zones.

The arrival of important quantities of fruit from all supplying origins on a market where the overall demand for exotics is very limited complicates even more the marketing of these fruits. For the time being, litchis are not fruits consumers are used to buying and prices at retail level are still too high to arouse a demand for the fruit. The demand for litchis should however pick up more seriously next week, with prices that are expected to continue dropping. At present it is difficult to forecast how consumers will react to the arrival of the fruit.

In addition, the litchi sea freighted campaign was officially opened on November 27th in the Tamatave area. This rather late date to begin the campaign with, will make it necessary to have an efficient logistic system to allow good marketing conditions for the fruit. Taking into account possible delays due to loading and transport, the fruits will only have one weekend of sales before Christmas. The way this campaign is set up leads to believe that competition will be strong on the different markets to sell a maximum of fruits during a very short period of time.

Two container vessels have already left Madagascar with fruits that were harvested in the Manakara area. Volumes shipped are still to be confirmed. Whatever the case, chances that these volumes will overlap with the two ships expected for Christmas are high. Several elements seem to be gathered to make this beginning of campaign a difficult one.

Estimate of incoming volumes
(in tons) 

EUROPEAN MARKETS

Germany : No information this week.

Belgium : Important drop of prices for litchis sold this week. This drop in prices affects both fruits from South Africa and Madagascar. Apparently the fact that South African fruits are of better size does not seem, for the time being, to be giving them a marketing advantage.

Spain : Marketing of fruits from Madagascar is rather slow. Fruits manage to sell but is seems that the high level of price is affecting orders that remain low. Quality of fruits is deemed satisfactory.

France : The simultaneous availability of litchis from Mauritius, Madagascar, South Africa and the Reunion has impacted on prices that are on a down trend compared to prices done last week. Prices for litchis from Madagascar, sold around 6.00€/kg at the beginning of the week progressively dropped during the week. At the end of the week, prices were ranging between 4.80€ and 5.00€/kg. For the time being there is no special crave for the fruit. Supplies received appear to be enough considering the weakness of the demand at the beginning of this campaign. Competition between supplying origins is steady, with a small advantage for litchis from Madagascar. These fruits more important in volumes determine or generate the down trend on the market. On stem fruits from Mauritius do not resist to the pressure generated by fruits from Madagascar. Despite a strong drop in prices, fresh litchis from Reunion still sell at higher prices. But supplies available from this origin remain very weak for the moment. There are also some small lots of fresh litchis stripped of the branch from Madagascar, fruits are of average quality (packed in 2kg boxes without plastic bags) showing rapid signs of oxidation.

Italy : The first lots of litchis from Madagascar and South Africa arrived on the Italian market this week. First sales lead to difficult discussions between importers and retailers. Prices are already on a down trend.

Netherlands : Apparent stability of prices for litchis from Madagascar and South Africa available on the Dutch market. Supplies for the time being are still weak but should rapidly increase in the coming weeks.

United Kingdom :The marketing of litchis has not really started. Only a few lots of South African fruits were sold this week.

Exchange rates (November 2009) :

1 EURO
United Kingdom	0.8975GBP
Madagascar	3 007.45 MGA (Ariary)

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