Important Update – Week 18
The cross-over between old and new season fruit has historically been a simple affair. We have experienced significant supply gaps which have made for a reasonably smooth transition.
Recent domestic market forecasting has indicated moderate volumes of fruit yet to pack. These estimates are especially important because we are now at a point where new season fruit harvesting is not that far off. The last two seasons have seen harvesting commence between mid and late May. This season however appears to be somewhat different and recent information suggests that we might be approaching a potentially challenging situation should current season crop be available at the point of new season harvesting.
It seems clear that some marketers have late season bin stocks that are well in excess of what could be called a comfortable level. We struggle to find logic in this strategy given the strong late season export window as well as the solid domestic OGR figures that have been achieved over the last month. It should be noted that overall trade conditions even through the Covid-19 lockdown period have been very satisfactory.
Excess bin stock in storage at this time may have a wider industry impact. If volumes are as significant as advised yesterday, the consequence is likely to be that the fruit concerned will need to be cleared. There is potential for current OGR values to be impacted in order to move the retained volume. Zeafruit has no control over any potential outcome and we are extremely disappointed that flow-plans have been managed inadequately. Our strategy will be to hold values at the current level however ultimately the market will dictate whether this is entirely achievable.
We will continue to keep you updated and will have individual discussions with those late season suppliers who may be affected.
Glen and team