It has been reported that the anchovy canning industry has been stalled for several months due to El Niño. The long lasting effects of El Niño, nearly two years in duration, have prompted the fish to move to deep, cooler waters, out of reach of the nets of the South American fleets. The export market hasn’t been greatly affected since volumes are lower and canned goods can be kept in storage for a longer time. Another reason that drove many canners out of business is that freight costs are extremely high, which makes it difficult to handle the raw material in the port. Atalanta has finally returned to normal inventory. Please contact the grocery department for any new business.
Greece’s cling peach production is set to be slightly lower than last year’s reduced output. This is the third year out of the last eight that Greece’s cling peach output has fallen below the 400,000-ton mark. Based on this year’s harvest, the industry estimates that canned peach production could fall by one million cartons to 9.5 million. Production figures may move up or down depending on the quality and size of the fruit. We will keep you informed of any pricing or inventory changes.
Indonesia and Thailand saw the price of raw materials come down about 20% in early 2016, and factories were hoping the situation would improve for the second half of the year. Unfortunately, El Niño continued to affect the harvest and raw material supply has decreased by 50%, which created a backlog of orders. As a result, factories withdrew from the market. The situation is even worse for “choice” quality as lack of water and constant heat do not allow the pineapple to grow big enough before it ripens. Climate researchers in Asian countries predict that rainfall is likely to be limited during the next one or two months in the supplying countries of Vietnam, Thailand and the Philippines. The fruit price is likely to remain at high levels through the final quarter of the year.
The cold snap of the past weeks may have damaged 20% of the tomato crops in Northern Italy and could cost up to EUR20 million (USD22.6 mln) in losses in Southern Italy, according to local growers’ organizations. The association of Italian cooperatives, Alleanza delle Cooperative agroalimentari, calculated that approximately 3,000 hectares of tomato plantings in Puglia have been destroyed by the heavy rain. If this figure is accurate, it would correspond to an estimated loss of 4% of the entire production of the country. In the north, the tomatoes transplanted in April are particularly at risk because of the large amount of rainfall in May, double the standard seasonal precipitation. A farmers’ organization, Confapi, related that almost 30% of the tomatoes in the area of Mantua were damaged by the cold since the beginning of the month. Some farmers were forced to start the transplanting from scratch, causing the cost per hectares to rise by EUR300, reaching EUR1,000. Atalanta will keep you updated on any change in our pricing.