WEEK 35 MARKET REPORT

Quick update for you below.

The start of the export season has traditionally signalled a period of relative market stability. The early domestic window closes and the market operates mainly from the export flow-plan.

However once again, the norm has seemingly changed. Export has commenced including some early Australian shipments nevertheless the domestic market is anything but stable.

At the New Zealand marketers meeting approximately two weeks ago we spoke about the significant over-supply of small sized fruit – 36’s and below. This should have seen some sort of industry message given to growers – if you harvest small sizes your return could, at best, be around the cost of production or perhaps worse. Zeafruit suppliers have been kept fully informed of the price pressure on smaller sizes.

The New Zealand market is clearly split into two segments. Retail programmes which have some stability and offer stable returns and steady movement of sizes 16 to 30. The wholesale market is predominantly focused on smaller size fruit given the current under-supply of larger sizes. Reports from wholesale this week indicate a 20 cent per piece sell value for size 36 in some markets; hardly inspiring values.

The challenge for growers is to maintain a harvest focus on fruit that will achieve satisfactory pricing. With demand for size 30 for export, some skill will be required to avoid picking smaller sizes that will potentially prove to be financially marginal on the domestic market. Therefore, unless strip picking, there is some pressure on harvesters to keep to optimum weight.

Currently returns have dropped back a little due to promotional activity but remain very consistent in the 16 to 24 size range.

Our view is that little will change across the near weeks. We have continuing promotion with both supermarket chains however some pressure on larger sizes could occur should values for size 30 fruit reduce further.

Pricing is for the current sales period. Prices may not always accurately reflect your returns as stock may be held over pending sale or as the market dictates. Where no price is recorded, sales have not been made in the report period. Prices are subject to change based on daily market conditions. Packing/packaging should be deducted from these prices.