Market Report    
Balsamic Vinegar Update | Grape Harvest 

The 2017 harvest has been affected by extreme weather conditions. In the spring, there was severe and extended frost; the summer was arid, with high temperatures; furthermore, in many areas, hail damaged the grapes. These events dealt a hard blow to viticulture in all the primary grape producing countries in Europe: Italy, Spain, and France have meager yields. In Italy, the estimates point to harvest volumes  25% lower than in 2016.  Because of the lack of raw material (must and wine for vinegar), including the sector of Balsamic Vinegar of Modena, prices are expected to increase in 2018. 

Mandarin Orange Harvest | China 

China is struggling with a shortage of workers and their rising salaries. The labor shortage not only increases the price of the raw material but also leads to a sharp decline in raw material output. The output is less than last year, and the supply of the final product is not adequate to the demand. Raw material prices have gone up from around Rmb1.20/kg to Rmb2.60/kg and significant price increases are expected in the coming months.

Olive Update

Spain:  Due to a lack of rain and high temperatures, most of the varieties of fruit did not reach their ideal size for table olives. The poor crops mean that the supply of large size olives will be short, causing a price increase. 

Italy:  The Castelvetrano crop had a tough year. Extreme weather conditions in late August destroyed much of the groves. The organic crops will be used for the conventional olives. In 2018 there will be an increase in price on this item.

Tomato Harvest | Italy

At the beginning of the season, there was fear of a drought, but the 2017 harvest matched 2016 output. The recent strengthening of the Euro has caused prices of imported Italian tomatoes to rise. 

Atalanta is aggressively partnering with our supplier to offset the price increase. Organic tomato production has doubled in the last two years, providing a volume opportunity.
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