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IN THIS ISSUE :
ORANGE JUICE
The USDA has dropped the
forecast for Florida’s current
2012/13 crop to 141 million boxes
down 4% on last season.
Offers from Brazil have softened
marginally .
APPLE JUICE
Offers for concentrate from both
Poland and China have eased on
the back of a quiet European
market.
LEMON JUICE
The lemon crop in top-producer
Argentina will begin in two weeks
and everything looks good for a
normal harvest.
GRAPE JUICE
The grape crop in Argentina is
now underway and local sources
are predicting a 15% increase in
production from last year’s poor
harvest.
GRAPEFRUIT JUICE
The USDA has left the forecast for
Florida’s current 2012/13 crop
unchanged at 18 million boxes.
PINEAPPLE JUICE
Thai concentrate prices are on par
with last month.
MANGO JUICE
Industry sources in India say that
processors have no stocks to offer
buyers ahead of the new crop.
The flowering for the 2013 mango
crop in India has occurred and
looks good.
PASSIONFRUIT JUICE
Free stocks of concentrate
continue to be scarce in Ecuador,
the key world producer of passion
fruit juice concentrate.
FEATURE
Interview: Bernhard Frei, CEO at
Quicornac
In this issue we introduce our
Company Profile feature, which
will be a regular addition to the
editorial coverage.
MARCH 2013
ISSN 1746-9805 (Online)
ORANGE JUICE
late will have been partly
responsible.
Florida’s frozen concentrated
orange juice (FCOJ) yield
forecast for the 2012/13
season is 1.62 gallons per box
(42 brix), up 1% from the
previous month, but down 1%
on last season’s final yield of
1.63 gallons per box. Analysts
say smaller fruit tends to have
slightly better yields.
There is still a great deal of
uncertainty regarding the issue
of fruit drop and many believe
that the crop forecast will be
reduced again in the March
USDA report. Industry sources
say there could be a very small
‘overpick’ in the early and midseason fruit and so there is
unlikely to be a cut there.
However, another one to two
million boxes cut from the
Valencia’s would not be
unexpected.
There was also a mild freeze
event in mid-February, but it
appears there was little, if any,
damage.
USA
The USDA has dropped the
forecast for Florida’s current
2012/13 crop to 141 million
boxes (6.35 million tons), down
1% from the previous forecast
and 4% below last season.
Droppage is the highest since
the 1969/70 season, while
sizing is below average.
The early, midseason and
Navel varieties in Florida are
forecast at 66.0 million boxes
(2.97 million tons), unchanged
from the last report but down
11% from last season.
The Florida Valencia orange
forecast, at 75.0 million boxes
(3.38 million tons), is down 1%
from the previous forecast but
up 4% from the 2011/12 crop.
The market was expecting the
accelerated
drop
in
the
Valencia portion to continue
and so the report was no
surprise.
Local sources in Florida
suggest that HLB or greening
disease could be the main
contributing factor to the higher
-than-normal droppage, but
add that the warmer weather of
Futures
The FCOJ futures market
climbed towards the end of
ORANGE JUICE FUTURES CONTRACT*
200
23 Jan 2012 (219.95)
6 Mar 2007 (208.6)
150
cents / lb
solid
1 June 2004 (54.65)
19 Dec 2012 (141.5)
100
18 Feb 2009 (66.25)
18 May 2012 (102.2)
50
Jan-04
Source : ICE
Jan-06
ISSUE 90
* Nearby contract, day close
Jan-08
Jan-10
Jan-12
Jan-14
PAGE 1
MARCH 2013
February to trade around
USD1.27/lb, but a sharp drop
last week - the biggest fall this
year - saw prices retreat to
USD1.21/lb. Reuters reports that
the plunge was generated by a
rash of speculative and technical
selling. Traders in New York say
the market has been ‘choppy’
over the past month and is seen
as range bound between
USD1.10-1.40/lb.
The smaller Florida crop is the
primary
factor
supporting
prices, but consumption has
also
shown
signs
of
recovering. At the same time,
the cost of production has
increased in the US so that
USD1.10/lb now looks like a
fairly solid floor.
A recent forecast of a much
smaller crop in Brazil next year
(see below) is also bullish
factor in spite of the weighty
stocks there at present.
Looking forward, the main
market drivers are the smaller
Florida crop and the fact that
the decline in consumption may
have bottomed out (See chart
on next page).
Florida FCOJ stocks , however,
continue to trend higher as may
be expected this time of the
season. Movement is up 1.7%
season-to-date.
The next USDA report is also
10
FLORIDA - FCOJ - MOVEMENT
8
6
Million
Gallons
4
2
0
Jan-01
SOURCE : FDOC
Jan-04
Jan-07
Jan-10
ISSSUE 90
Jan-13
important. As is how well the
cash market holds up while the
industry tries to digest the
Brazilian inventories.
Next season
At the time of writing (2 March)
the Florida growers were
concerned about a frost threat
brewing in Florida, which could
affect the bloom for next
season. The trees are in full
bloom state-wide right now.
Local sources say the bloom
looks good, if a little early in
some of the warmer areas,
which would increase the
freeze risk to a higher
percentage of acreage than
normal.
As mentioned, the freeze in
mid-February appears to have
done minimal damage to the
current
2012/13
crop.
However, there are concerns
that it may have cutback next
year’s production on those
areas that were already in
bloom.
The cold snap last month is
also expected to induce
another bloom in March and
the sharp drop in temperatures
expected imminently could
encourage a third bloom. It
remains to be seen if this will
be a multiple bloom season
and what effect it may have on
the 2013/14 crop. Generally,
multiple blooms are not good
and at the very least cause
problems with picking.
The climate over the past week
in Florida has mainly been a
run of almost record high
temperatures, with little to no
rain. Not the typical winter
where the trees store cold
energy. Analysts say time will
tell
how
that
impacts
production on next season’s
crop, but the adverse weather
conditions
combined
with
disease is certainly causing
stress on the trees, as
evidenced by the very high
PAGE 2
MARCH 2013
drop rate.
Early expectations for the
2013/14 crop are for a smaller
harvest, below 140 million
boxes.
Brazil & Mexico
The 2012/13 crop is effectively
over in Brazil; two of the larger
producers
have
ceased
processing and the third is only
running fruit at one of the
plants. However, the biggest
news at the moment is the
forecast on the next crop
there.
The
Brazilian
Association of Citrus Exporters
(CitrusBR) estimates that the
commercial growing areas of
Sao Paulo and Minas Gerais
will produce 281 million boxes
of
oranges
during
the
forthcoming 2013/14 crop year,
down 23% from the previous
crop estimate of 364 million
boxes.
Current growing conditions are
favourable – hot temperatures,
but with regular thunderstorms.
Independent analysts suggest
the next crop could easily
US OJ SALES DECLINE BOTTOMING OUT?
The steady fall in orange juice sales in the US may have bottomed
out (See charts). NFC sales, according to FDOC, have held up well
despite a weak economy and rising prices.
40
USA - ORANGE JUICE
APPARENT CONSUMPTION*
NOT FROM CONCENTRATE
30
Million
Gallons
20
RECONSTITUTED
MONTHLY DATA
* REFRIGERATED
10
2002
7.25
2004
2006
2008
2010
2012
USA - OJ - RETAIL PRICE*
NOT FROM
CONCENTRATE
6.25
USD
/ Gallon
Pricing
Price levels have softened
slightly to USD2200-2300/
tonne 66 brix FCA Europe,
compared with USD 23002500/tonne last month.
(NFC prices remain stable at
USD650-750/tonne).
The FCOJ buyers are only
covering their immediate needs
and many are convinced that
prices are on the verge of
collapsing.
Nevertheless, the big producers
in Brazil are aware that dropping
prices is unlikely to stimulate
enough demand to offset any
price cuts. They realize that juice
is probably over priced at the
moment, but are concerned that
any significant discounting would
quickly send prices plummeting.
The industry is split as to
whether this would actually
happen. Either way it is fairly
clear that the producers are
keen to keep prices where they
are until at least the next crop.
Future supply
5.25
RECONSTITUTED
4.25
* REFRIGERATED
SOURCE : FDOC
3.25
Jan-02
reach 300 million boxes.
CitrusBR said it would release
a final estimate on the current
crop and refresh the forecast
for the next crop in May.
In terms of stock levels
CitrusBR said the country’s
global
inventory
on
31
December 2012 was 1.14
million tonnes of FCOJ. Of
which 311 000 tonnes can not
be commercially utilized until
June 2013 under the special
credit
line
agreement
processors made with the
Brazilian Central Bank (see
previous issues of Juice
Market).
Jan-04
Jan-06
Jan-08
Jan-10
ISSUE 90
Jan-12
It is true that the Brazilian juice
tanks are full to the brim at the
moment and many processors
were forced to put juice to
drums last month.
It is also true that consumption
PAGE 3
MARCH 2013
APPLE JUICE
BRAZIL - FCOJ - OFFER PRICE
2500
USD
/ TONNE
1500
66 Brix
FCA WEST EUROPE, BULK
500
Jan-97
Jan-01
has been falling for a number of
years now.
Nevertheless, the latest A C
Nielsen
report
suggests
consumption is now stabilizing
in the US at least and in spite of
the high stocks in Brazil at
present the long-term outlook
points to a trend of much lower
production there.
This is mainly attributed to the
high number of independent
growers pulling trees to switch
to
other
crops.
Analysts
estimate that this will erase 40
million boxes from the market
for at least eight years starting
from next season. It will also see
the three remaining large
producers in Brazil commanding
a higher percentage of the
orange supply, enabling them to
tighten their grip on pricing
structures.
This 40 million boxes equates to
around 170 000 tonnes of FCOJ
equivalent, which would bring
total production from Brazil well
below the 1 million tonne mark
next season. During the current
bumper season the industry
produced 1.05 million tonnes.
Uptake
Analysts suggest that while
consumption is still falling in
Europe it is not falling at the
same rate as production is
Jan-05
Jan-09
Jan-13
expected to. Brazilian output
could fall to 880 000 tonnes
next season, while global
uptake of Brazilian FCOJ is
forecast at 980 000-1 000 000
tonnes for 2014. The weighty
stocks would take care of the
imbalance for a while, but there
is a definite question mark over
the
supply
and
demand
fundamentals in the long-term
future.
Carry-over stocks could be
reduced to a bare minimum
within three or four years.
Moreover, there is a possibility
that the government will extend
the
credit
line
on
the
aforementioned 311 000 tonnes
of stocks, which would take
these supplies out of the
market for another year.
The crop next season will not
come early so this will also give
the producers more time to
offload supplies. In addition,
producers could also store
stocks in tank farms in the US.
The bottom line is that now the
2012/13 crop is over there
seems to be no problem with
finding places to store the juice.
Meanwhile, juice ratios in
Mexico are reportedly unusually
high. This is not a huge
problem, but industry sources
say that the flavour profile of
orange juice quickly diminishes
above 20 ratio.
ISSUE 90
The apple juice concentrate
industry in Poland has begun
to run limited volumes of coldstore apples through the
processors.
The European market is already
well supplied with production
during the recent 2012/13 crop
from Poland reaching between
250 000-300 000 tonnes. The
industry would usually produce
between 200 000-220 000
tonnes in a usual year.
Offers for concentrate in
Poland have eased once again
to EUR1200-1250/tonne 70
ECKES-GRANINI TO ACQUIRE
PAGO
Brau Union A.G. (‘Brau Union’),
a subsidiary of Heineken N.V.,
announced that it has signed an
agreement with the EckesGranini Group GmbH (‘EckesGranini’)
to
divest
Pago
International GmbH (‘Pago’).
Pago is an Austria based
producer of fruit juices. With its
Pago brand, the company has
prominent market positions in
Austria, Italy, France and Spain
and
a
wider
geographic
presence in over 35 markets. In
2011, Pago achieved a net
turnover of EUR92 million. The
transaction
is
subject
to
customary closing conditions
and is expected to be
completed in the first quarter of
2013. Terms and conditions of
the transaction were not
disclosed. As part of a strategic
review process, Brau Union
determined that Eckes-Granini,
as a dedicated juice and nonalcoholic beverages company,
is a better strategic fit for Pago.
The close cooperation, including
distribution
arrangements,
between Pago and Brau Union
Österreich will not be affected
by this change in the ownership
structure.
PAGE 4
MARCH 2013
not necessarily need any
Chinese produce this year and
thus too slow in reducing
prices to reasonable levels.
Analysts estimate that China
produced between 800 000850 000 tonnes during the
recent 2012/2013 season.
Current stock levels are
pegged around 300 000
tonnes.
2500
CHINA
USD / TONNE
EUROPE - APPLE JUICE
OFFER PRICE (C&F)
Chinese origin
70 Brix, Low Acid
USD / TONNE
2000
1500
EUROPE
€ / TONNE
European origin
70 Brix, 3+% Acid
€ / TONNE
LEMON JUICE
MONTHLY DATA
1000
Jan-11
Jul-11
Jan-12
brix 3% acid ex factory Poland,
compared
with
EUR12501350/tonne last month.
The market is still quiet and
that is why prices have
continued to fall, say traders.
There is enough supply until
the next crop and no-one is in
a rush to buy.
Next season
With the bumper crop in
2012/13 it is likely that the
MGEX
AJC
FUTURES
CONTRACT
RECORDS
DOUBLE DIGIT GROWTH
February
saw
double-digit
increases in the Apple Juice
Concentrate (AJC) contract
both in volume and open
interest. Total AJC volume was
reported at 215 contracts traded
(against 51 traded in January),
with
futures
contracts
accounting for 60 contracts
traded and options contracts
accounting for 155 contracts
traded.
Total AJC open interest was
reported at 196, with 41 of
those being futures contracts
and 155 of those being options
contracts. The February 21
trade date saw record AJC
trades, with total volume at 112
contracts traded.
Jul-12
Jan-13
Jul-13
supply will be lower next year.
The apple juice industry relies
primarily on the wild apple
orchards, which are not
predicted to produce nearly as
much next year. At the same
time the commercial orchards
will make sure the fresh market
is supplied, before they turn to
offer discounted volumes to the
processing industry
Nevertheless, it is still freezing
in Poland, which actually helps
the trees to store energy for the
bloom and so production could
be good once again.
It is still far too early to tell, but
most industry sources expect a
smaller crop with higher prices
for apples.
The lemon crop in topproducer Argentina will begin
in two weeks and everything
looks good for a normal
harvest.
A poorer-than-average crop in
Europe has generated extra
demand for both fresh fruit and
concentrate from Argentina,
say local sources.
Offers for concentrate are at
USD2000-2100/tonne cloudy
400gpl FOB Buenos Aires.
Juice exporters say the
industry in Argentina is facing
many issues this season. A
very high inflation rate of 25%
over the last five years has
caused significant problems for
all fruit processors and higher
overhead costs for harvesting,
freights, processing and wages
are expected to support pricing
for the foreseeable future.
China
Price levels on the Chinese
market have dropped down to
USD1200-1300/tonne low acid
70 brix FOB China. A far cry
from
the
USD1750/tonne
offered just four months ago.
At this level European traders
have begun to get interested,
but the Chinese producers are
asking for payment upfront
which is reportedly preventing
any deals being signed.
The European importers say
the Chinese processors have
taken too long to understand
that the European market does
ISSUE 90
GRAPE JUICE
The grape crop in Argentina is
now underway and local
sources are predicting a 15%
increase in production from last
year’s poor harvest, bringing
the crop up to normal output
levels.
The government quota, which
allocates the quantity of fruit
destined for juice processing, is
fixed at 30%, which means there
should be 150 000-160 000
tonnes of concentrate available
for export.
PAGE 5
MARCH 2013
Raw material prices have been
fixed
at
ARS1.40-1.50/kg,
which equates to a white
concentrate price of USD2200/
tonne in drums FOB Buenos
Aires.
This is relatively expensive
compared with previous years
and is mainly attributed to the
industry entering the new
season with zero carry over
stocks.
Processors are aware that they
are likely to lose business to
apple concentrate producers –
the two products are very
similar and apple concentrate is
USD1000/tonne cheaper.
Trading is expected to be
concluded on a short-term
basis unless price levels ease,
say processors
GRAPEFRUIT JUICE
The USDA has left the forecast
for Florida’s current 2012/13
crop unchanged at 18 million
boxes. The white grapefruit
forecast is pegged at 5 million
boxes and the coloured
grapefruit forecast remains at
13.0 million boxes.
Fruit sizing for both white and
coloured grapefruit is the
smallest since the 1968/69
season. Droppage for both
white and coloured grapefruit is
expected to be the highest of
any season not affected by a
freeze or hurricane.
Growing conditions are fairly
dry at the moment, which is
apparently not unusual for this
time of year. The bloom for
next season has just appeared,
but it is too early for any
forecasts.
Local sources in Florida say
that most of the 2012/13 crop
has now been harvested and
that February/March is when
the majority of grapefruit
processing occurs. However, it
appears that processing is
lagging compared with last
year. Analysts say this could
be attributed to the processing
plants being used to crush the
higher-than-usual volumes of
oranges that have dropped
from the trees.
The supply and demand ratio
for grapefruit juice continues to
register slower movement and
higher inventory. Grower prices
for processed grapefruit are
down suggesting that inventory
levels are starting to weigh on
price levels.
Prices for white juice are at
USD1.90/lb solid, compared
with USD2.10/lb last month.
Coloured juice is trading at
USD1.40-1.50/lb,
compared
with USD1.50/lb in January.
Nevertheless, local industry
sources say that there is a good
deal of demand on the market at
the moment, particularly for
white juice, which would indicate
that the data on movement is
about to change.
Traders in Europe do not see
the supply situation increasing
this season or next. There are
no new areas being put to
grapefruit in Florida and disease
is preventing recovery of Cuba’s
plantations
following
a
devastating series of hurricanes
in the early and mid 2000s.
Price levels in Europe are
expensive at USD3000/tonne 58
brix ddp Europe and traders say
deals have been going through
as high as USD3300/tonne.
Demand
in
Europe
is
reportedly brisk and there are
buyers actively looking for
product right now.
PINEAPPLE JUICE
Key producer Thailand is inbetween crops at the moment,
with processors running just a
third of the volumes they would
during peak production periods.
Raw materials are currently
changing hands for THB4.00/kg
or lower. With the higher over
ISSUE 90
heads in Thailand in recent
times, this is probably the
lowest price farmers are willing
to accept.
Concentrate prices are on par
with last month at USD9001000/tonne 60/65 brix FOB
Bangkok. Industry sources say
buyers should beware of
quality issues with any produce
offered at the lower end of this
range.
Some traders say that while
demand is not rising, it is
steady, and certainly better
than towards the end of last
year. Others say the market
has been weak for at least four
weeks.
Market direction
It is difficult to determine how
far ahead buyers are covered
and it would seem there is
mixed opinion as to where the
market is heading. Some
buyers have fixed contracts to
the end of 2013 and many are
trying to do likewise. At the
same time, there is an equal
proportion of buyers only
covering their immediate needs
in the anticipation of further
downward price movements.
There is also the lower
consumption in Europe to be
factored in, which would mean
contracts are lasting the endusers longer.
At the same time, the shipping
industry is threatening to
increase freight rates by
USD35/tonne which is keeping
some upward pressure on
pricing, but the market is
generally
seen
as
soft,
especially with the summer
crop beginning next month.
Nevertheless, if prices do fall
out of bed, the floor is likely to
be much higher than last time
the market crashed. Increased
overhead costs, the strong
Thai baht and particularly the
recent
increase
to
the
minimum
wage,
are
all
PAGE 6
MARCH 2013
significant factors which should
support the market well above
the previous low in 2000 of
USD600/tonne.
Stocks
There have been efforts by the
Thai industry to limit juice
production to only orders
coming in. They want to offer
fresh produce and also want to
avoid building up speculative
stocks that they can not sell.
In spite of this cautious
approach, there are still plenty
of stocks in Thailand and
Europe
and
most
other
producing regions are offering
too. A scenario that has been in
place for a year now.
New crop
Growing conditions for the
summer
crop
are
ideal;
temperatures are warm and
there is not too much rain and so
the crop is expected to be normal
at his stage.
A few months ago there was
concern that an El Nino would
bring drought to the main
growing areas. This would have
happened in January if it was
going to and so the risk is now
over.
The only real concern at the
moment is that the growers have
not invested in sufficient fertilizer
given the lower returns they have
been receiving for fruit recently.
GSP suspension
In related news there are
reports that the European
General System of Preference
(GSP) has been suspended for
exports of pineapple from both
Thailand and China. This would
No part of this publication may be
reproduced or distributed in any
form or by any means, or stored in
a database or retrieval system,
without the prior written permission
of the publisher. All rights reserved.
mean Thailand would lose its
duty free status and be subject
to an import duty of 11.8%
when bringing supplies into
Europe from January 2014.
Juice Market can not confirm
these reports. Some industry
sources suggest this might be
a misinterpretation of the new
customs description which is
now “used in the manufacture
of products of food or drink
industry” and not “used in the
manufacture of products of
drink industry” as before. Either
way it unlikely this suspension
will come into play given that
Europe does not produce any
significant
volumes
of
pineapple concentrate and
therefore does not need to be
protected from imports.
Other regions
Traders in Europe say they are
receiving offers from all other
regions at the same level or
lower than Thailand.
In a bid to generate sales of their
premium pineapple concentrate,
processors in Costa Rica have
dropped prices once again to
USD1400-1550/tonne
CFR
Europe, from USD1500-1700/
tonne last month. The price
spread represents the difference
between B grade 60 brix aseptic
to A grade 65 brix frozen.
Meanwhile, the 2013 season in
South Africa has just begun
with ‘minimal start-up tonnages’
reaching processors.
The market is reportedly quiet
with very little enquiries coming
through. Nevertheless, local
sources in South Africa say
that production is sold forward
until April/May due to the lowerthan-expected output during
the 2012 season.
Exporters say they are baulking
at the low prices the Thai
processors are offering at and
say the South African industry
would not be able to survive at
these levels.
ISSUE 90
MANGO JUICE
Industry sources in India say
that processors have no stocks
to offer buyers ahead of the
new crop. The flowering for the
2013 mango crop in India has
occurred and looks good.
Alphonso
Growing conditions have been
stable in the main producing
regions of Bangalore, Hubli,
Dharwad, Ratnagiri and Valsad.
Flowering was reported to be
good in all the above growing
areas.
The European market has been
active for Alphonso puree and
there has been some interest
from the North American market.
There are reportedly no stocks of
either 2011 or 2012 sitting with
processors.
Trades have recently been going
through at USD1350-1475/tonne
15-17 brix FCA Europe, similar
to price levels in January.
Manipulated Alphonso puree
(blended with cheaper mango) is
offered at USD900-1100/tonne
on the same basis.
Totapuri
The
climate
has
been
favourable in Andhra Pradesh,
Karnataka and Tamilnadu and
the bloom is also looking good.
Demand for Totapuri puree and
concentrate has been brisk
HUNGARY- FRUIT JUICE
CONSUMPTION DECLINES
The Hungarian Association of
Soft Drink, Fruit Juice and Mineral
Water Manufacturers announced
that
annual
per-capita
consumption of carbonated soft
drinks declined to 54.6 litres in
2012 from around 57 litres in
2011. Consumption of fruit juice
fell to 20.4 litres from 23.7 litres
during the same period.
PAGE 7
MARCH 2013
from Europe. Exporters also
report enquiries from North
America, but no uptake from
other markets.
In contrast to last month, local
industry sources report that
there are no stocks of either
Totapuri puree or concentrate
from either the 2011 or 2012
crop available now.
Puree from the 2012 crop was
trading at USD725-750/tonne
FCA Europe in February, on par
with offers in January.
Asking
prices
for
2012
concentrate have also remained
stable at USD1075-1100/tonne
28 brix FCA Europe.
Buyers appear to be covered
until the end of March and are
not yet ready to fix long-term
contracts for the rest of 2013,
say local exporters. There are
reports that the European spot
market is particularly active at
the moment.
Saudi health regulations
Indian exporters continue to face
problems with shipments of
canned Totapuri puree to Saudi
Arabia from Saudi Health
authorities. The Saudi importers
are asking their Indian suppliers to
complete the contract with aseptic
Totapuri puree. The Indian
suppliers are facing an extremely
difficult situation, with prices for
aseptic puree being considerably
higher than canned puree.
As mentioned last month, the
Indian exporters do not have
any avenues for disposing of
their unshipped/rejected stocks
- the other gulf markets are
already satiated and are unable
to absorb these supplies.
Americas
The main summer crop in
Colombia will begin next month
and there are early reports
from European producers that
pricing
is
going
to
be
‘aggressive’.
PASSIONFRUIT
JUICE
Free stocks of concentrate
continue to be scarce in
Ecuador,
the
key
world
producer of passion fruit juice
concentrate.
The industry there is currently
just beginning to come out of
the most recent trough of a
long standing high-then-low
three-year production cycle.
Processors are only offering
new supplies on the spot
market for one or two loads at
a time.
The next peak production
period will be in March/April
and growing conditions are
very good at the moment. This
will bring some limited relief to
the supply situation.
In spite of the improved out
look
supplies
remain
expensive.
Second
hand
stocks of older produce are
trading in Europe for USD70008000/tonne 50 brix FOT
Europe. European industry
sources say there are trades
going through at this level,
albeit for small volumes. The
spot market for new produce
from Ecuador is between
USD8000-8500/tonne on the
same delivery basis.
Demand remains strong due to
15000
the shortage, but traders do
not think that the market will
climb much higher.
It is difficult to pin down how far
ahead buyers are covered. It
looks like some have sign
contracts for the full year at
lower price levels and others
are trading on a hand-to-mouth
basis.
Replanting
The high prices of late have
encouraged the Ecuadorian
farmers to replant in earnest
and the new fruit is predicted to
come on stream by the end of
the year.
Local industry sources are
expecting production to be 1030% higher this year than in
2012. The increase could be
even higher given that many
farms are small and quite
scattered, the sum of which
could bring a recovery earlier
than expected.
Meanwhile, the market in Peru
is also experiencing the same
short supply situation as in
Ecuador. Peru also has the
added strain of a strong local
market for fresh fruit.
Exporters in Ecuador also
report
that
demand
for
concentrate from Brazil is
rising significantly.
PASSIONFRUIT JUICE
OFFER PRICE*
10000
USD /
TONNE
5000
*50 BRIX FOT
EUROPE
0
Jan-00
ISSUE 90
Jan-03
Jan-06
Jan-09
Jan-12
PAGE 8
MARCH 2013
COMPANY PROFILE
Juicemarket interviews Bernhard Frei, CEO at Quicornac
In this issue we introduce our Company Profile feature, which will be a regular addition to the
editorial coverage over the next year.
Name of company
Quicornac SA (Ecuador) and Quicornac SAC (Peru)
Number of employees
350
When was the company founded?
1989
Where are your production sites located?
Ecuador and Olmos, Peru
What are your primary products?
Passion fruit juice, concentrate, aroma, oils, mango puree and mango concentrate, mango aroma.
Detail a recent new product highlight?
In 2012 we added a clarified line, so we are now able to provide clear passion fruit and mango
concentrates.
Would you like to share any future strategic plans?
We are preparing to launch a version of extra pulp passion fruit and mango puree. We see a trend
towards more textured purees, with minimal mechanical processing. This works well with many dairy
applications.
What are the top trends influencing your business in 2013 and do you believe they will continue
to influence in 2014?
Exotics such as passion fruit and mango continue to drive new product development. Consumers are
clearly more and more health conscious. Passion fruit in particular is gaining popularity as an essential
tropical ingredient in many recipes, from juice to dairy. It blends very well with most fruits, for example
orange and pineapple. Passion fruit will continue to grow, thanks to interest from research and
development and marketing teams, due to its flavourful taste.
What marketing, PR and advertising does your company invest in and what do you find the
most successful?
We advertise in some trade magazines, but the bulk of our expenditure goes to trade shows, such as
the Anuga Fair in Cologne, Germany. We believe a combination of the two has worked well for us, but
the real impact is measured in years and not months. Experience, reliability and quality are today's
main marketing drivers.
Please describe your average customer?
Our main customers are compound producers and juice and dairy bottlers.
In which countries are your juices sold?
We sell all of our products as semi-finished goods to the industry. None of our core products are sold
to individual consumers.
Which is your biggest market?
Our biggest market is Europe, followed by the US.
Which is your fastest growing market?
Our fastest growing market is Latin America and Asia with the US coming in third.
ISSUE 90
PAGE 9