WEEK 37/38 MARKET REPORT

Since our last market update, trade has been stable, order volumes consistent, demand good and generally everything has been tracking well.

The only blip on the radar over the last few weeks has been the direction to our growers to limit small fruit harvesting due to both excess supply and inadequate value. I would question the time it took to get this information across the wider industry. The New Zealand Market Group met on Monday the 19^th of August and every marketer at that point indicated a real issue with small fruit volumes and value. In the majority of cases it would seem that little was actioned for at least ten to twelve days.

With what could only be described as a positive month behind us, it is time to look ahead at the next four weeks and assess what we are likely to be doing; especially given the up and down nature of export intentions and weather conditions.

Whilst general trade pricing remains stable, volumes are lifting and pricing is starting to come under some pressure. Promotions are now being penciled on a weekly basis. The volume of sizes 28 to 32 continues to be heavier than ideal. This on its own is not significant as long as retail demand stays strong and we get good pull-through from consumers. Currently this is an area of concern and requires considerable attention.

Projecting forward, there seems to be no reason why values will alter significantly from current levels. The adverts in place should keep demand driving forward subject to good pricing practices being maintained. I predict that on a week by week basis there will be a slight increase or decrease in value by pack type and size depending on which retail chain product is destined for and how aggressive their strategy is likely to be.

To date both retail chains have shown maturity in their approach to advert pricing which is a bonus for the industry especially given the ‘clear at all cost’ tactic evident with some second-tier marketers.

Current promotional activity, given the size profile, is centered mainly on sizes 24 and 30. Large sizes 16 to 20 remain in good demand and values have not come under pressure at all.

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.