WEEK 38 MARKET REPORT
Despite inward domestic market volumes being steady and demand remaining satisfactory, there are a few easily read signals emerging that need to be highlighted.
Small size surpluses continue. It’s surprising that a number of marketers continue to pack and sell significant volumes of this size category. One could almost suggest that perhaps commission is more valuable than grower return sustainability?
Pressure is most definitely on any piece of fruit smaller than size 32. With continued harvesting of smaller sizes and discounting surfacing, this situation is starting to impact size 28 as well as the smaller sizes.
Up until to now, values in medium and large count sizes have maintained value. It was concerning therefore that earlier today it was brought to my notice by a retail partner that some parcels of fruit are being traded at pricing well below listed levels. This is of concern if that becomes the norm and not the exception.
At this stage we do not see a need to review values in the size 16 to 32 fruit – however if the warning signs we are noting start to become consistent patterns of behaviour then we will, of necessity, publish new pricing guidelines.
We trust that with steady and reasonably predictable volumes being packed, those under-selling will recognise that they are impacting grower returns ill-advisedly.