
The pineapple market is experiencing significant upheaval. Recent data reveals a dramatic surge in raw material costs and pronounced supply shortfalls that have far-reaching implications for processors and exporters alike. Here’s an in-depth analysis of the current pineapple market dynamics:
1. Spike in Raw Material Costs
Raw material costs for processed pineapple products have escalated sharply. As of late May, prices reached $0.30/kg, a substantial increase from the typical $0.10/kg seen in average seasons. This surge is attributed to heightened demand from both the fresh produce and juice sectors, with the juice industry experiencing a price increase in raw materials to $0.15-0.20/kg.
2. Global Supply Shortfalls Impacting Demand
A notable shortfall in orange juice supplies has inadvertently boosted the demand and prices for pineapple juice. With Thailand’s reduced output of pineapple juice concentrate, buyers are increasingly turning to Costa Rica, creating a ripple effect across global markets.
3. Escalating Prices for Frozen Pineapple Products
The price of frozen pineapple products has shown a significant uptrend. By the end of May, the price for frozen pineapple 1/8 was quoted at $1.60/kg FOB, with projections indicating a rise to between $1.80-1.90/kg FOB. Prices continued to climb through June, with 10×10 diced IQF pineapple surpassing $2.0/kg and 1/16 cuts hovering around $1.85/kg at European ports.
4. Challenges in Supply
Pineapple processors are grappling with a 50% reduction in supply, primarily due to the fresh sector absorbing even the low-quality fruits typically designated for processing. This, coupled with competitive pressures from the juice industry and a dearth in Asian supplies, has forced some IQF producers to renegotiate or retract from prior agreements.
5. Quality Concerns Amid Fruit Shortages
The volume and quality of pineapples have deteriorated, with average fruit sizes shrinking from 1.6 kg to approximately 1.1-1.2 kg, reflecting a 25% reduction in volume compared to typical crop yields. Processors are frequently receiving less than contracted volumes, while fresh exporters face unprecedented challenges selling smaller pineapples.
6. Export Trends Offer a Silver Lining
Despite numerous challenges, export figures offer some optimism. Costa Rican frozen pineapple exports rose by 7% year-on-year in the first quarter of 2024. While there were declines in shipments to the US, Canada, and Belgium, substantial gains in markets like the Netherlands, Chile, and Germany have helped balance the scales.
Navigating Market Complexities
The current landscape of the pineapple market necessitates strategic navigation of the myriad supply constraints and pricing pressures. Companies and stakeholders must adapt swiftly to these changing dynamics to mitigate impacts and leverage emerging opportunities.
Need Pineapple for Your Business?
Are you navigating the complexities of sourcing pineapple for your company? At Noon International, we specialize in connecting businesses with high-quality frozen fruit products, ensuring you have access to the best produce even amid market fluctuations. Contact us today to find out how we can help meet your pineapple needs and keep your supply chain running smoothly.
Email: sales@noon-intl.com | Phone: +1 (206) 283-8400
Noon International LLC Team
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