Important Market Report – Week 14
Almost a week in lockdown and the picture remains unclear about the longer-term effects. However we are seeing a very significant impact on avocado demand.
Food service and wholesale trade channels have completely stopped. The only avenue now existing is the supermarket retail trade.
This situation is having an impact. We are experiencing value competition as well as a restriction in the ability to move all grades and sizes.
We have already seen a drop in values in all regions which will flow forward into next week without doubt. Pricing for next week therefore is down and expected to be in the range of $22.00 to $25.00 per tray equivalent for sizes 16 to 30 at cool-store door. Smaller sizes have no price guarantee and we are restricting packing accordingly. We continue to pack class 3 however only for sizes 16 to 30.
Points to note:
- NZ Avocado weekly packed numbers for last week totaled 12,000 tray equivalent therefore volume is well down on forecast.
- There is some panic clearances occurring by some non-retail suppliers. This is fruit packed in the last fortnight and we anticipate that these volumes may well disappear over the next week or so.
- Most retail programme suppliers have delayed harvest and adjusted plans to suit the slow down. Fruit that is stable and holding well will be pushed out as far as possible – it’s only the end of March so we have time to allow the market to adjust.
- Retail chains are responding with promotional activity to assist moving surplus fruit currently on hand.
These are challenging times and outcomes are not as expected. We will keep you updated about continued market activity and information whether it be good, bad or indifferent.
The Zeafruit team in Gisborne and Bay of Plenty continue to operate as normal so please make contact with us if you have any queries.
Best regards and stay safe
Glen and team