Pineapple raw material prices reported a slight downtrend trend for October 2022 but deliveries of raw material suddenly reversed in early November forcing prices back up. Average prices have increased from THB 6.5/kg ex-factory to around THB 7.5/kg in the eastern and southern part of the country where the majority of the canneries are located.
The price rise is due to lower fruit supply available these days: “Many pineapple fruits projected to be harvested in November came out or were harvested last month already, so daily output these days is lower,” a grower told S&P Global Commodity Insights on 15th November 2022. “The fruit price farmers consider adequate, based on harvesting costs these days, is THB 8/kg but canneries will push prices down when daily output improves,” the source commented.
In the meantime, canneries’ need for raw material remains reduced compared with other periods of time. Industry sources recently mentioned that inventory levels are believed to be accumulating in some cases due to slow demand. Overall, Thai canneries are being cautious in a ‘wait and see’ attitude when purchasing raw materials amid current market uncertainty.