Quarterly Market Update – April 2023

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Quarterly Market Update – April 2023

April 2023

ItemCountry of OriginBeginning of harvestEnd of harvestUpdates
Baby CornThailandYear roundYear roundFlooding from last year has reduced yields on crops, leading farmers to focus on larger sized product. This is decreasing the availability on the 150ct sizing, while demand for this size has not waned. Supply of cut product has not been negatively affected by flooding.
Tuna - Albacore and SkipjackThailandYear roundYear roundCatchings have been poor in yield. This is driving raw material costs to an 11% increase over same time last year.
OnionsChinaYear RoundYear RoundThus far, there are no indications of any adverse conditions on crop health nor operations.
OkraEl SalvadorMarchJuneThe new crop looks to be normal. There are no indications of any adverse conditions on crop health nor operations.
PineappleThailandAprilJuneThai origin product supply is a bit tight. Higher demand for juice concentrate is putting pressure on supply, causing costing to rise.
QuinoaPeruMayJuneLack of rainfall is still a factor. Supply is expected to tighten, resulting in elevated raw material costs.
PeppersChinaJuneSeptemberThus far, there are no indications of any adverse conditions on crop health nor operations.
EdamameChinaJulyNovemberThus far, there are no indications of any adverse conditions on crop health nor operations.
Caramelized OnionsSpainOctoberFebruaryOnions are in short supply in Europe and this is putting supply pressure on Spanish product. We are good on supply for existing demand until the new crop in October.

Logistics Update

Weakened freight demand and increasing capacity continue to put downward pressure on rates. Port-to-port rates are falling to their lowest since August 2020 on all trade lanes. We expect the ocean freight market to bottom out in Q2 2023 and remain low until an uptick in Q1 2024 as we settle into post pandemic stabilization.