CATZINFO – DRIED FRUITS & WALNUTS

In our last issue of the CatZinfo we cannot but look back to a ‘roller coaster’ year.
In the spring we were still hopeful as COIVID-19 figures came down, but meanwhile we end the year in lockdown and other restrictions for our daily live.
Though the pandemic was (and still is) the main issue  we did see a vivid trade in the food sector and especially in our scope of business: dried fruits & nuts.
Demand for these products was stronger than ever and resulting in firmer pricing for most products.
Other elements like the insane increase of freight rates in combination with logistic disruptions and some smaller crops, caused a further increase of prices in general.
Once more the importance of reliable supply partners has been proven to be of eminent importance.
For next year we fear we have at least in the short term to cope with more or less same issues.
Freight costs will not get back to the old levels; constraints in the shipping and transport chain will not be over.
For this reason stocks will be low with more chance to get out of stock.
Smaller crops and empty markets will not be over in a few weeks, as only the new crop may bring some relief, but this will only occur in or after Q2 once the new crop from the Southern Hemisphere is in.
A question mark is the situation in Turkey – in our product range an important player . Today the Turkish president announced measurements to support the value of this currency,
which at least for time being strengthened the rate of the Turkish Lira by over 25% (after having lost half of its value since beginning of this year).
Before closing this year with only some brief and actual  highlights about some of the markets, we do take the opportunity to thanks you for your trust in our team.
We wish you pleasant holidays with some time to relax and have a break to pay attention to things that really matter.
Be sure we will be ready to support your needs as off early January 2022.


Dried Fruits

Apricots
Last week the continuous weakening of the Turkish Lira seemed to be translated in somewhat lower prices, quoted in dollars for the Turkish apricots.
Meanwhile it became clear that there are only limited stocks uncommitted and prices on the local market in Malatya firmed to unprecedented levels in Turkish Lira.
As there are no alternatives – other than other fruits – for Turkish apricots, we foresee a severe shortage till after the summer of 2022, with prices we have not seen before.
If still needed, we cannot but advise to ‘take the pain now’ as better it will not become till the new crop comes available.

Banana chips
The super typhoon “Rai” hit the Philippines severely. Half a million people had to leave their homes to look for shelter and an important part of the infrastructure has been destroyed or damaged.
A next typhoon is already expected next week.
All of these typhoons will have massive impacts on raw material prices like bananas.
This is usually what happened when super typhoons hit and the crop recoveries will take months due to  replanting (which has not begun yet).
Based on this, there is expectation that  prices of banana chips will be volatile going forward.

Cranberries
Prices firming and most shippers booked for the coming months.

Prunes
Prunes for spot delivery are hardly to find. The warehouses in Europe are running empty.
Though the new crop from Chile will bring some relief and may ease the prices, Physically these will not arrive before May/June – if containers available – so at least another 5 to 6 month with tight availability ahead.


Nuts

Walnuts
The delayed shipments from California due to the continuous rolling over of containers will arrive after Christmas.
Meaning an important part of the high season consumption will be missed and will not be recuperated by double consumption in the coming months.
Demand will be less and we see buyers holding back, which makes Californian exporters nervous as they had expected a firmer market with this smaller crop.
Spot prices are still firm as obviously stocks are – for reasons as explained – limited.