After a challenging six weeks with little price movement it is encouraging to note a firming of values as we head into late January and the end of the main export packing window.
The completion of export packing traditionally signals the beginning of a climb in late season domestic values. Growers who have retained crop have generally received good late season values.
Looking ahead that would almost appear to be the case………however we believe there needs to be some words of caution tabled.
With the majority of the exporters pushing for a size-managed harvest throughout most of the season, there is likely to be a significant amount of small fruit left on trees unharvested. Some of this remaining crop has and will continue to size; a portion however is likely to be of limited or marginal size. Depending on the overall volume likely to be destined for the local market, we are sounding a cautionary note to advise that the traditional late season values could potentially be impacted if the volume of small fruit is excessive.
Looking at today’s market, limited large sized fruit are struggling to achieve expected returns because the volume and value of smaller sizes is restricting the potential to differentiate returns – something that would normally be achievable. However the preponderance of smaller sizes at lower price-points has constrained our ability to price larger fruit at the levels we would prefer. In short, current values reflect a challenging market created by the size-hand that we have been dealt.
We will be keeping our late season supply partners as informed as possible and we will be endeavouring to optimise returns at every opportunity.
Glen and team
$26.00 to $28.00 CSD
$21.00 to $23.00 CSD
$18.00 to $20.00 CSD