The 2022 summer pineapple crop in Thailand began mid-April. Harvesting conditions appear good and deliveries to the factories are beginning to pick up. Predictions from the summer crop production are positive, a more accurate forecast from the producers is expected by June-July, during the peak of the crop.
Challenges with nitrate levels in the soil have led to a wide disparity in the price of the product, and also a decrease in the size of the fruit. Raw material pricing is expected to ease amidst the peak of production.
Analysts say limited trade has taken place at current prices, and that producers are testing the market. Nevertheless, supplies remain short in the global market. Costs such as freight, energy, labor and steel are increasing, hence the demand for concentrate is strong.
Strict COVID-19 restrictions imposed by the Thai government have made harvesting operations difficult. While no other sources of pineapple concentrate are available in the global market, prices are likely to remain firm. The buyer’s stocks are expected to last till June 2022, following buying trends of existing contracts. They are also acting to procure supplies for the second half of the year. Producers expect the market during the second half of the year to be intense. Factories will shut down between July to September and the resuming date for the winter crop is questionable.
Nevertheless, the yield forecast from the summer and winter 2022 crops remains at 1.2 million MT. While this is a far cry from the ~2.2 million MT produced in Thailand before. However, the output forecast for this year is better than the previous year.