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° 52/07

French version

ORIGINS	GERMANY		BELGIUM		SPAIN		FRANCE		HOLLAND		UNITED KINGDOM
Weeks	51	52	51	52	51	52	51	52	51	52	51	52
Air	-	-	-	-	-	-	-	-	-	-	-	-
Mauritius (b)	-	-	-	-	-	-	-	-	-	-	-	-
Mauritius (s)	-	-	-	-	-	-	-	-	-	-	-	-
Madagascar (b)	-	-	-	-	-	-	-	-	-	-	-	-
Reunion (b)	-	-	-	-	-	-	5.00 - 6.00	6.00 - 7.00	-	-	-	-
South Africa (s)	-	-	-	-	-	-	-	-	-	-	-	-
Sea	-	-	-	-	-	-	-	-	-	-	-	-
Madagascar	1.10 - 1.20	1.00 - 1.20	1.00 - 1.50	1.00 - 1.40	1.00 - 1.50	1.25 - 1.50	0.80 - 1.00	1.00 - 1.40	0.80 - 1.30	1.10 - 1.25	1.25 - 1.75	0.70 - 1.00
South Africa	-	-	-	-	-	-	-	2.00 - 2.50	-	-	-	1.80 - 2.00

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 26/11	Atlantic Reefer	Mrs 9/12	2210p
Tamatave 27/11	Eagle Bay	Mrs 10-11/12	4080p
Tamatave 27/11	Galaxy Harvest	K 11 /12	2850p
Tamatave 29/11	Hawk Bay	Mrs 12/12	3950p
Tamatave 29/11	Hansa Bremen	Mrs / SN 13-18/12	4080p

The above mentionned indications are subject to confirmation. Note: Mrs : Marseille / K : Koper / VD : Vado / SN : St Nazaire.

GENERAL INFORMATION

Surprising inversion of tendency during week 52. Indeed, one observes a significant recovery of the selling rates of the litchis of Madagascar on the French market, whereas traditionally the week between Christmas and the New Year's Day the step for the consumption of this product marks rather. This reversal of situation undoubtedly marks a new evolution in the marketing of the Malagasy litchi. This situation is probably ascribable with various combined factors.

First of all the good gustatory quality of the fruits which supported the sales near the consumers. The very gravitational prices at the stage of detail also constituted an essential engine for the flow of the important tonnages delivered by conventional ships before the festivals of Christmas, more especially as the other "festive" products remained available at prices definitely higher. The aspiration of consumption caused by these various factors involved a rarefaction of the offer logically reflected on the prices, in waiting of the arrival of the first containers of litchis of Madagascar (available in middle of next week). The perceptible movement on the French market was not yet really propagated on the other European places. It will be to it probably the next week.

One can only be delighted by this new orientation of the prices, but it is advisable to specify that it has not erased of anything poor starting marketing of the product for ten days. In addition, volumes profiting from a return at a more constant selling price remain less important than run out tonnages at low prices. It will be also underlined that the share of product which could not be marketed because of qualitative problems, making the object of contention or subjected to specific handing-over, takes part, with the maintenance of averages of sales lower than the announced prices.

Nevertheless, the new tendency could continue in the next weeks insofar as the sale of the fruits of the conventional ships is completed and that the program of arrivals per container remains limited to approximately 210 containers this year. The first containers of South Africa were delivered this week.

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

Estimate of incoming volumes
(in tons) 

EUROPEAN MARKETS

Germany : Sales much less important this week because of the number of reduced days of activity. Repercussion of consumption at the following day of the festivals of Christmas. The prices remain relatively stable but bottoms of forks are exhausted.

Belgium : Important commercial pressure because of consequent offer in product and of more marked problems of quality. Although specific, of the points of not very evolutionary moulds affect many batches of fruits. Deceleration of the sales at the following day of the festivals of Christmas. The litchis conditioned out of paperboards of 2 kg (1.20-1.40€/kg) are developed better than those packed out of paperboards of 5 kg (1.00-1.20/kg).

Spain : Rather active sales in spite of the low number of days of marketing this week. Upward trend of the prices in weekend, with a less important offer. The total quality of the fruits is considered to be satisfactory by the operators.

France : The week was characterized by a progressive recovery of the price of the litchis of Madagascar. Sold on a basis of 1.00€/kg at the beginning of week, the course of the litchis hardened Wednesday and Thursday around 1.20€/kg and until 1.30-1.40€/kg in weekend. This unexpected recovery of the courses intervenes after one week of intense sale at low price, which supported the flow of the great majority of the fruits delivered on the conventional ships. The repercussion of the low prices in the great distribution encouraged the consumers to buy this gravitational product, of beautiful colouring and good gustatory quality. The aspiration of the request of last week involved a relative lack of products, explaining the recovery of the prices. The rise of the courses apply to the goods of satisfactory quality; the goods of lower quality are always negotiated at lower prices. The started tendency this week should continue the next week, according to a number of operators, with a stabilization of the prices around 1.40/1.50€/ kg.

This evolution is consolidated by the program container relatively limited this year. Fruit stocks of the first ships should run out, essentially, the next week before the arrival of the first containers whose setting in market is envisaged about January 2/3. In margin of the provisioning of litchis of Madagascar which dominate the offer, the first arrivals containers of South Africa were put on sale this week. Their best calibration and their satisfactory quality allow the practice of higher prices. These goods are more directed towards the traditional distribution systems. The rise in the prices of the Malagasy litchis was not reflected yet at the stage of the detail. Certain supermarkets still propose litchis at gravitational prices (1.25-1.95€/kg according to signs'). Difficult market for the litchis of the Meeting, whose quality remains very variable according to batches'. The connected litchis are developed better (course above), on the other hand the shelled fruits are negotiated on bases of price definitely lower of about 3.00 to 5.00€/kg.

Italy : demand for weaker the following day festivals of Christmas with still a strong pressure of stocks of the fruits conveyed for the conventional ships. The will of recovery of the prices is carried out very with difficulty (1.20-1.40€/kg).

Holland : Difficult market with sales at the prices indicated above for the goods of good quality, which it is advisable to moderate with sales at lower prices because of a defective quality. The averages of sales remain low if one takes into account the problems of quality and the refusal of certain distributors.

United Kingdom : Market dominated by the offer of Madagascar with goods variously appreciated according to the quality of the received batches. Batches of heterogeneous quality côtoient batches of goods of satisfactory quality. The operators are rather agreeably surprised of the good colouring and the good gustatory quality of the Malagasy fruits even if if certain batches punctually have a less quality in reasons of points of moulds. The fruits of Madagascar are negotiated, in direction of the markets the large one on bases of 1.35-1.45€/kg. Some batches of litchis of South Africa are sold on the markets of large around 1.80€/kg.

Exchange rates (December 2007) :

1 EURO
United Kingdom	0.6972 GBP
Madagascar	2 586.65 MGA (Ariary)

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