Tridge Seasonal Market Report - May 2020

May is the season for grapes, watermelons, garlic, onions, and blueberries as well as lemons & limes in Mexico and apples / peanuts / ginger in the Southern Hemisphere. 

Tridge provides up-to-date information on the new harvest season and export trends of 2020. With this report, we would like to help importers and exporters all around the world stay tuned with rapidly-changing market dynamics and navigate through purchasing options.

Key Highlights in the Market

Grape

Mexican grapes are looking up despite lower production volume compared to the previous season, as limited supplies will equal higher profits. Exports are not likely to be severely affected by the coronavirus as its products are headed towards retail stores, which have largely remained open. On the other hand, the United States will have to deal with cheaper Mexican grape imports and limited domestic demand. Exports will be constrained as well, with the reduced need for US grape imports in Mexico and slow-downs in logistical operations. Egyptian grapes also suffer from logistical issues and the lack of labor with quarantine restrictions. Read the Full Report Here. 

Citrus

For this season, planting acreage for lemons and limes in Mexico, the world's second-largest exporter, increased to approximately 250 ha, and production was forecast to increase slightly to 2.4 million MT in early 2020. However, the coronavirus has made it difficult for Mexico to fully take advantage of its production increases as demand in the foodservice sector dropped and export costs shot up. Exporters are currently having to sell their products at cheaper prices. Read the Full Report Here.

Apple

In South Africa, apple production has finally returned to its original levels with better weather conditions and drought prevention. New Zealand’s production will increase for the third straight year, with expansion in planting areas. Labor issues have also been mitigated as many arrived before border closures. Despite the positive outlook on production for both countries, exports have been on the down-low, with challenges in shipments, including limited availability of containers and port closures. Read the Full Report Here.

Berries & Other Fruits

The Californian blueberry harvest is estimated to hit a record 77 million pounds with the peak harvest period to come in late May to early June. Despite a good harvest, increased import volumes from Mexico combined with reduced demand from COVID-19 has made it hard for the producers. Suppliers are hoping that China's follow up on the Phase 1 deal is expected to alleviate some of the difficulties.  Spanish watermelons have been met with hardships in production as well as demand for this season. There has been limited supply in Almeria, one of the largest producing regions, due to excess rainfall and lower temperatures. After witnessing initial decreases from the coronavirus, prices have been starting to rise back from May. Read the Full Report Here.

Garlic & Onion

After disruptions in early 2020, there is currently an abundance of Chinese garlic in the market that has brought lower prices of around USD 0.71. The harvest volume for Mexican garlic, on the other hand, is expected to be 14% less this season amid high demand within the domestic market. Spanish onions for this season are having trouble with a shortage of workers. Despite this fact, prices have decreased by 10.2% over the past quarter as European onion production is hitting record levels and imports from New Zealand and Peru are threatening the Spanish onion sector. Read the Full Report Here.

Nuts & Spices

The impact of the coronavirus on the South American peanut harvest is minimal with production levels up by 45K tons for Argentina (similar volumes from last year for crushed peanuts) and 435 MT from last season for Brazil. Exports will be lowered, however, from logistics complications. New varieties of Tanzanian peanuts are being cultivated, and peanut sales are expected to be affected by the government's recent regulation on protecting domestic products. Brazilian ginger has enjoyed an uptick in demand since the outbreak, with ginger commonly known for its immunity-boosting properties. Read the Full Report Here.