Market Report May 2025
Pineapple
Raw material remains scarce in Thailand, Indonesia, and the Philippines, while global demand for pineapple has increased.
At the peak of the Thai summer harvest in April, daily yields reached 3,500 tons, which represents only a 5% increase compared to last year’s record low for the first four months. After peaking at over 18 THB/kg, the raw material price has now settled at around 12-13 THB/kg. Thai pineapple factories will undergo their annual maintenance shutdown from July to September, which will further reduce raw material availability during this period. The outlook for the subsequent winter harvest is slightly more positive, as current rainfall levels are sufficient.
In Indonesia, raw material remains scarce; no further volumes are expected until the end of the year due to existing contract commitments. The Philippines are not expected to see recovery until 2026. Since April 8th, a 10% import duty has been applied to products entering the U.S. from Thailand, Indonesia, and the Philippines. We are closely monitoring how U.S. trade policy will impact availability and pricing for the European market. Given the current situation, we recommend securing your requirements at least until the end of this year.
Tuna
Following record catch volumes last year, major packers in Ecuador have significantly expanded their capacity. Catches in Manta remain satisfactory, albeit slightly below last year’s levels.
Slight increases in landings in Bangkok have pushed prices in the Philippines down from $1,700 to $1,625. We anticipate stable price levels in the coming weeks. However, fishing restrictions will come into effect again in July, with the FAD ban in the Philippines and the Veda in Ecuador. The reduced raw material supply is expected to drive prices up again in the short term.
We recommend securing your requirements for the second half of 2025 now. Currently, we are estimating a lead time of 4 weeks from order placement to shipment.
Tomatoes
At the beginning of this year’s season, producers and farmers in Spain and Portugal agreed on lower raw material prices. However, the rainy months of March and April delayed the planting of seedlings by around 4 weeks in Portugal and the main Spanish growing regions of Andalusia and Extremadura. Harvest is now expected between mid-August and October. Waterlogged fields prevented the use of planting machinery, forcing farmers to delay planting, and many seedlings stored in greenhouses were damaged or lost. Many farmers are reluctant to take the risk of harvesting after mid-September, when rainfall is frequent, and may decide not to plant all available fields. This could result in a reduction of cultivated area. We expect prices to decrease compared to last year, although not as significantly as initially projected.
In Northern Italy, delays in planting were caused by cold temperatures, lasting around 2 weeks. Following a 30% harvest shortfall last year due to heavy rainfall and the resulting inability to fulfill contracts, growing areas have been expanded. Raw material prices have been fixed at slightly higher levels than last year between farmers and producers.
As a result, we anticipate that prices for low-concentration processed products will remain at last year’s low levels, while prices for higher-concentration products may increase slightly. We will keep you updated as the season progresses.
Capsicum – Capia, Topa, Lombardi
Despite a slight reduction in cultivated areas in Turkey, the Capia and Topa crops are progressing as planned: fields have been properly prepared. We will continue to closely monitor crop development in the coming weeks, as weather conditions remain a key factor. Demre peppers are facing challenges due to high levels of defective raw material, reducing this year’s availability. We expect significantly higher prices for Turkish products compared to last year.
For Lombardi peppers, the situation in Turkey is particularly tight: growing areas have been reduced by around 75% compared to last year, driven by farmer dissatisfaction with last season’s yields and a lack of agreement on prepayments from processors ahead of this year’s harvest. Consequently, we anticipate a 70% reduction in Turkish volumes and significant price increases.
Meanwhile, the Egyptian market is developing dynamically, with more and more suppliers entering the capsicum sector. Production is expected to begin in mid-June. In addition to standard 5 kg cans, we offer large-volume packaging options with a net weight of 10 kg, ideal for industrial processing. Please let us know your requirements – we are happy to assist you.
Coconut
The prolonged El Niño-induced drought of 2023/2024 continues to have a noticeable impact. At the same time, coconut trees are yielding less raw material, a phenomenon that recurs roughly every five years and lasts for several months. Supply remains tight across all key origins.
On the demand side, we see a globally increase, primarily driven by the Chinese market. These factors have caused significant price increases in recent months. For the months ahead, we expect prices to remain firm at best, with a possibility of further increases. We strongly recommend securing your coconut product requirements through the first quarter of 2026 now.
Freight Rates
The ocean freight market is currently dominated by major capacity shifts. The reduced tariffs between the U.S. and China will tie up many vessels in the trans-Pacific trade over the coming months, leading to port congestion in the U.S., which will also impact other trade lanes. At the same time, waiting times in Northern European ports have not yet eased, with vessels waiting up to a week to berth. The gap between scheduled and actual transit times is currently very large, with delays of up to 10 days for shipments from Asia. We are factoring these uncertainties into our current supply chain planning.
Although we consider our sources to be reliable, we do not assume any liability for the completeness and accuracy of the information listed here.
