"Thailand Pineapple Supply Outlook"DATE:   March 13,  2024

Fruit supplies in Thailand are currently facing challenges due to insufficient rainfall. As we enter the Summer season, the rising temperatures exacerbate the situation. A prolonged dry spell in the next two months could significantly impact the weight of Winter crops, particularly affecting pineapple production in terms of quantity and quality, which almost certainly will lead to shortages and subsequent price hikes.

In Thailand, this year’s total raw material supply is anticipated to be around 900,000 metric tons, similar to last year, attributed to the ongoing El Nino effect. This weather pattern not only impacts Thailand but also Indonesia and the Philippines, resulting in an approximate 25% decrease in expected tonnage. Despite the current scarcity, there is optimism for a tonnage rebound by late 2024, though uncertainties persist regarding fruit quality. Packers are expected to conclude operations earlier this year due to these challenges.

Furthermore, ocean freight costs are on the rise, driven by escalating tensions in the Red Sea region. Lengthier transit times around southern Africa are leading to vessel congestion and increased container shipments to the West Coast. Freight expenses along the West Coast are climbing due to factors on the East Coast in 2024. Although East Coast port congestion remains manageable, sporadic vessel clustering occurs at the Port of New York and New Jersey.

To understand what share Thailand, Indonesia and the Philippines hold in global fruit production market, we have to look back to data collected back in the year 2020. In 2020, the Food and Agriculture Organization (FAO) documented a global fruit production of 887,027,376 metric tons. Below is a compilation of the top ten countries and their fruit production volumes for that year, all measured in metric tons.

Lakeside Food Sales Inc is a bulk food ingredient supplier and distributor. Due to many of our products being Food and Agricultural Commodities, we closely monitor various reports offered by product manufacturers and data, analytics and climate conditions that are released by various world organizations. This data often provides insights into pricing for raw material for raw food ingredients that we supply to clients.

The content and viewpoints shared in this presentation were crafted by Lakeside Food Sales Inc. It contains forward-looking statements grounded in anticipated future events, yet remains subject to risks and uncertainties. Lakeside Food Sales, Inc. does not guarantee the accuracy of the content shared within, as this data was derived from various reports and briefings published by one or more industry resource and/or government agencies or world organizations.