PINEAPPLE

The production of the summer crop has ended and most factories in Thailand are now closed. Factories are expected to re-open in October for the 2020 winter crop.

Production from the recent 2020 summer crop was extremely poor and the high price for fruit is not allowing processers to offer competitive prices for PJC. The 2020 harvest forecast for Thailand is at the level of 0.8 to 0.9 million tonnes (the normal level is 2 – 2.2 million tonnes and last year it was 1 million tonnes).

Replanting has reportedly been slow for the past six months which means that there is unlikely to be any change in the poor supply from Thailand until the second half of 2021. Pineapples require 18 months for harvest, hence if the farmers start to replant now, the harvest period will be in the summer crop of 2022.

In terms of pricing, with the low supply, the price of PJC is unlikely to soften until the situation in Thailand improves. This situation highlights the strengths of FSL’s associate, PT Great Giant Pineapple who can offer fresh pineapple products year-round with their massive plantations in Indonesia.

We have received information that some of the suppliers from Thailand are offering lower prices for old stock of PJC which contain nitrate content levels higher than AIJN standards.