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'Dollar-issue' increases pineapple import prices

"Generally, I have to say that the current situation is much better now, compared to the last few weeks. Prices and the market situation have increased noticeably," explains Ralph Fischer, marketing and key account manager of INTER, Internationale Fruchtimport Gesellschaft Weichert GmbH & Co. KG. The traditional company from Hamburg imports pineapples from Costa Rica, Panama and Ecuador to Europe. "The price is related to the size of the fruit, so prices are fluctuating. Smaller fruits cost between 11-12 Euro and bigger calibres between 13-14 Euro," the manager reports. Fischer sees no changes coming for INTER in the upcoming weeks; "As it stands now, we do not see that the market will be subject to major changes during the next few weeks. We would be happy if the prices would remain at the current level."

Inter markets its pineapples inter alia under the brand "Fyffes"

Rain and exchange rate causing problems
Furthermore, deliveries from import countries are largely stable, reports the importer. Only Costa Rica delivers fewer fruits to Europe. "Costa Rica received an extreme amount of rain during the last four to five months. This is not good for the expectations of the present, nor future pineapple harvest," Ralph Fischer clarifies. A much bigger problem for European importers is the current exchange rate. Due to the stronger dollar and weakening Euro, the importers costs are rising. "The dollar-problem led to a significant increase of our import prices," says the manager, "Of course, the logistics and freight costs through the decreased crude oil prices are a bit lower, but in general, that doesn't compensate the price increase. The freight is paid according to the rising US dollar exchange rate."

Requirements for plant residues challenging for growers
Growing pineapples normally takes around 14 months. The harvested pineapple is available to the German food retail market in around 14-21 days. The requirements of the European and German market for pineapple importers and their producers are different. "EU, UN or ECE standards. Each customer decides on which standard he applies at the end, "says Fischer, "In general, retail companies are having their own requirements for their maximum residue level and they differ from the legislature requirements. Some companies allow only 70 percent of the legally permitted amount of residue and other companies allow only 30 percent. "Especially many producers are struggling with these requirements. Ralph Fischer explains: "The conditions are quite difficult to achieve for the producers. Due to the different climatic conditions in the producing countries, pesticides have to be applied differently. Sometimes more and sometimes less."

"Crownless" demand in convenience sector
INTER has been operating in the food trade for more than 100 years. Founded in 1910 in Hamburg, the importer supplies to Germany, Scandinavia and Austria with his goods. Over the past few years, the company has noted that demand for "Crownless" pineapples has increased. "The largest amounts of the crownless fruits are going into the convenience sector," explains Ralph Fischer, "Convenience customers can dispense of the crown." In addition, by eliminating the crown, it is possible to package more fruits into the same carton. That leads also to a better CO2 balance. A trend for special sizes or varieties on the German market is not noticeable. "Size specifications are based on the price", the manager reports, “The custumers are asking for varieties that fit into their price expectations. In addition, it also depends what sales price he would like to achieve. The supply is also relevant. If you have smaller fruits in the import, then you there are also increasingly smaller pineapples in supermarkets."

For more information:
Ralph Fischer
Internationale Fruchtimport Gesellschaft Weichert GmbH & Co. KG
Banksstrasse 28, 20097 Hamburg
Tel: +49 (0)40 329 000
r.fischer@interweichert.de
www.interweichert.de