Meat
Brazilian cattle prices remain high but steady in what is traditionally a quiet period leading up to Carnival in Rio next month. Traders expect more activity after that and some price increases. The impact of Russia starting to buy frozen beef again, and the relaxation of EU import restrictions imposed after the foot and mouth outbreak in 2005, will put pressure on cattle prices. EU veterinary officers will visit the banned areas in March to review the current status, but sources in São Paulo are confident there will be a relaxation of the ban.
Heavy rainfall in the main cattle-raising areas will result in a higher retention of cattle - causing a shortage through the markets - but UK importers say this has been taken into account in their forward purchase contracts. "We do not expect any price increases on corned beef before the peak summer demand," one said. Any forward sterling prices are dependent on sterling remaining strong against the US dollar.
Fruit
Exports of Chinese mandarins to the EU have been higher than expected, ruffling the feathers of Spanish packers, particularly as quality improves each year. Pre-season reports from growing areas in China indicated a possible shortage of fruit but import figures show contracts have been fulfilled. There were also reports that fruit processors were losing workers to the construction industry. Again, this appears to have been overstated. Spanish packers have sold their pack so political pressure to review the levy and licence arrangement has abated.
Turkey accounts for the majority of grapefruit segments sold in the UK - to retail and foodservice. Canners have been through a turbulent period with plants going bankrupt and then re-opening under new management. Raw material costs were 12% higher this season and labour, energy and transport charges escalated, but export prices showed only nominal increases.
Thailand, the world's largest pineapple exporter, is forecasting a 20% crop reduction for the year as farmers switch to more lucrative crops such as palm oil and cane sugar. Raw material prices to pineapple canners have risen from 3 baht/kg (£0.04/kg) to 4 baht, on the back of reduced tonnage.
A shortage in Indonesia caused by a lack of rain is adding to the pressure. Smaller fruit will add to processing costs, as will the strength of the local currency against the US dollar. Philippine canners report a normal crop but expect prices to rise in line with Thai levels, because of an increase in world demand for fresh fruit.
Brazilian cattle prices remain high but steady in what is traditionally a quiet period leading up to Carnival in Rio next month. Traders expect more activity after that and some price increases. The impact of Russia starting to buy frozen beef again, and the relaxation of EU import restrictions imposed after the foot and mouth outbreak in 2005, will put pressure on cattle prices. EU veterinary officers will visit the banned areas in March to review the current status, but sources in São Paulo are confident there will be a relaxation of the ban.
Heavy rainfall in the main cattle-raising areas will result in a higher retention of cattle - causing a shortage through the markets - but UK importers say this has been taken into account in their forward purchase contracts. "We do not expect any price increases on corned beef before the peak summer demand," one said. Any forward sterling prices are dependent on sterling remaining strong against the US dollar.
Fruit
Exports of Chinese mandarins to the EU have been higher than expected, ruffling the feathers of Spanish packers, particularly as quality improves each year. Pre-season reports from growing areas in China indicated a possible shortage of fruit but import figures show contracts have been fulfilled. There were also reports that fruit processors were losing workers to the construction industry. Again, this appears to have been overstated. Spanish packers have sold their pack so political pressure to review the levy and licence arrangement has abated.
Turkey accounts for the majority of grapefruit segments sold in the UK - to retail and foodservice. Canners have been through a turbulent period with plants going bankrupt and then re-opening under new management. Raw material costs were 12% higher this season and labour, energy and transport charges escalated, but export prices showed only nominal increases.
Thailand, the world's largest pineapple exporter, is forecasting a 20% crop reduction for the year as farmers switch to more lucrative crops such as palm oil and cane sugar. Raw material prices to pineapple canners have risen from 3 baht/kg (£0.04/kg) to 4 baht, on the back of reduced tonnage.
A shortage in Indonesia caused by a lack of rain is adding to the pressure. Smaller fruit will add to processing costs, as will the strength of the local currency against the US dollar. Philippine canners report a normal crop but expect prices to rise in line with Thai levels, because of an increase in world demand for fresh fruit.
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