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° 51/08

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)

Unloading of the « Comoros Stream » at Vlissingen 15th and 16th December

SUMMARY OF ARRIVALS BY SEA
(In pallets)

Litchis from South Africa (by container) good in size but mixed in colour depending on boxes.

GENERAL INFORMATION

At the beginning of week 51, the « Comoros Stream » second conventional vessel of 2008/2009 litchi campaign finished unloading its cargo at Vlissingen. Starting from Midday the 15th December the first pallets of fruit were loaded on trucks and sent to different European markets. This new delivery of fruits allowed a quick renewal of supplies following that of the previous vessel. The limited quality issues on the first part of the cargo weren’t noticed on the remaining cargo allowing better market conditions and better confidence in the fruit.

Simultaneously the second container vessel docked with substantial supplies that weighed even more on volumes already available, and although the demand is in progress, it is not adequate in regard volumes put on the market. Considering the general gloomy atmosphere on the European markets, with consumers that are falling back on traditional commodities more than on exotics, the continuation of the marketing campaign of fruits from Madagascar doesn’t seem of to a good start. The demand will certainly drop following the end of the year celebrations while supplies will stay important with 500 to 600 containers that will either already be or soon will be available on the market in the coming weeks. Considering the circumstances, it is difficult to see how the market could get any better. Already on almost all the European market the demand is dropping as we approach the End of the Year, one can wonder what will be the state of the demand after the end of the year celebrations. The strong competition that started last week has no reason to stop. On the contrary, the volumes of this second part of the sea freighted campaign will be more important than those received so far. They will be marketed in circumstances that should apparently be more difficult.

Export volumes from South Africa are forecasted to be less important due to bad weather conditions in production areas. If this information is to be confirmed, the reduction of South African supplies should at least benefit to improving the demand for fruits from Madagascar.

Estimate of incoming volumes
(in tons) 

Difference in size for litchis from Madagascar

EUROPEAN MARKETS

Germany : The demand is weak this year for litchis from Madagascar compared to previous campaigns. Consumers are more interested in basic products. Thus the consumption of imported commodities (exotics as well as off season fruits) is dropping. The quality issues on some lots of litchis from Madagascar affect prices that are on a down trend. At the beginning of the week prices were still around 1.50€/kg, but they dropped regularly to reach 1.10-1.40€/kg depending on the quality and the type of clients. Stocks of sea freighted litchis
are limited and should sell well next week. The first containers are expected for the weekend. The price at retail level is around according 2.00 to 2.90€/kg.

Belgium : The strong competition between operators selling litchis from Madagascar has led to a strong drop in prices. Prices of 1.5€ to 1.75€/kg done at the beginning of the week dropped to 1.00€/kg.

Spain : The gloomy situation of the Spanish market affects sales for litchis from Madagascar that are very weak. Consumers have a large variety of fruits available at prices lower than those done for litchis. Despite the fact that the demand has slightly picked up before Christmas it is still lower than it was last year. Quality issues on some lots complicate even more the situation with supermarkets and contribute to helping the drop of price observed.


France : New drop in prices for litchis from Madagascar. Competition between operators is very strong and is leading to economic aberrations, with prices done on the wholesale markets and with importers that are not receiving the fruits directly, that are at the same level as those done by persons importing directly the fruits. The pressure coming from available volumes is weighing on a market that is more dynamic since the beginning of the week but also extremely competitive. Instalment of supplies of litchis from Madagascar shipped by conventional vessels as well as the reduction of supplies compared to the previous campaign were elements that lead to believe that the marketing process would have been easier this year. Indeed, the volumes exported seem to be adequate with programs set up with supermarkets for the period before Christmas. Sales towards supermarkets are picking up this week, on the other hand, export sales are much slower. The incoming volumes of container vessels are now being confused with the remaining fruits of the conventional vessels. The almost simultaneous deliveries do not allow a price distinction between fruits shipped by two different transport modes.

Marketing of the first South African fruits. The good size and quality of these fruits allow them to sell at better prices. Price depending on size of fruits. Bigger sized fruits achieve better prices. However at the end of the week, prices for the fruits were slightly down because of competition from fruits from Madagascar at cheaper price. Strong increase of supplies from the Reunion for Christmas due to an increase of the demand. These fruits are generally sold in traditional stores. Prices for air freighted fruits from Reunion and Mauritius are much better than they were last week.

Prices at retail level in supermarkets of the Paris area vary a lot and depend on the shops and there location. However, most of the supermarkets are selling litchis from Madagascar between 2.50€ to 3.00€/kg. Some shops are doing special offers at lower prices between 1.70€ and 2.00€/kg loose or in nettings. The maximum price picked up in some rare stores is around 5.00€/kg.

Italy : The demand is better but the situation on the market is difficult because of the pressure on prices. Price trends are large and declining ranging between 1.75€ to 1.30€/kg.

Netherlands : The good sales as Christmas approaches are followed by a significant drop in prices. At the end of the week, some sales were done around 1.20€/kg.

United Kingdom : Good sales on the wholesale market with prices ranging between 1.60€ to 1.85€/kg. Some residual lots of South African fruits are sold on the basis of 2.70€ to 3.20€/ kg. Sales for these fruits are slow mainly because of competition from cheaper fruits from Madagascar. In supermarkets, some shops are mainly concentrating on traditional fruits more than on exotics, thus reducing the availability of litchis in their stores. On the other hand some shops are promoting litchis. Selling price from multiples is around 1.70€/kg.

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