Starting with broccoli and cauliflower, both of which are still UK (mainly Lancashire) and proving excellent in quality and have not moved either way on price throughout Sep-tember and remain as competitively priced for October.
UK new season Potatoes are in full swing with prices to reflect this. Similarly, the same for both swede and leeks.
As we near the end of UK salad season and await the start of the Spanish winter season, some salads are proving both tricky in supply and price.
Tomato’s in particular are seeing a sharp increase in price and are expected to remain high throughout October. Most lettuce and cucumbers are steadily rising in price; however, cel-ery and spring onions are still very good and remain the same for October.
Similar with salads and the UK season ending, most soft fruits are rising in price. UK Straw-berries are almost finished and supply from overseas (Holland/Spain) are more costly.
Oranges and Lemons remain expensive. The Spanish main crop was badly affected by dis-ease and we are seeing very little in the way Southern hemisphere supply.
Most stone fruits including, plums, peaches and nectarines are on the rise, likewise the same for melons as we start the new season in Brazil.
Veg produce to watch out for are large onions, pumpkin, kale, aubergines and courgettes.
Pork Remains relatively unchanged with prices still above the same period last year.
This year, UK pig meat production is set to rise again. However, supplies on the market will therefore be balanced by lower import levels, alongside strong export demand for U.K Pork, which is expected to continue.
Germany announced its first confirmed cases of African Swine Fever found in a wild boar near the Polish border.
China has put a total ban on all German pork imports although Germany is hopeful it may be able to achieve a regional agreement with China , with the loss of imports to China and other key markets then it could trap a large volume of pork on the EU market.
However in the past 18 months, the EU has been sending so much pork to China that even if Germany did lose much of its export market, the volume that would become available for consumption within the EU would not be large by historic standards. This is because this pork that has been exported, instead of being consumed in Europe, is not extra pork that the EU market would have to absorb, but rather volumes that the EU market had been consuming until recently.
Apart from China, South Korea, Japan, The Philippines, Brazil, Mexico, and Argentina have announced to close their borders for German Pig Meat. Japan even went as far as to block all pork from Germany produced after August 2nd.
Poultry remains relatively unchanged, slight movements upwards with EU states exporting large amounts to China.
Pricing looks set to remain firm with movement upwards with large exports leaving Europe for China this will put pressure on the UK producers with less imports coming into the UK market and demand rises.
Prices continue to trend at a high level for the time of year, being 44p above year earlier levels and up 43p on the five-year average. Throughputs totalled 124,000 had which is slightly down on the week, but significantly up on the year. Industry reports suggest export demand is still hot. However, concerns over the UK, or regions of the UK, entering lockdown have put a dampener on demand for the foodservice sector.
in July UK Lamb & Sheep imports totalled 3,900 tonnes, down 19% (900 tonnes) on-the-year. Imports from New Zealand remained subdued at 2,600 tonnes. Shipments from Ireland were also back on-the-year at just over 400 tonnes. In the year-to July UK imports are down 11% (4,700 tonnes), to 38,200 tonnes.
With the unusual high prices U.K Lamb is achieving for this time of year and the lack of imports, pricing looks to remain firm for the foreseeable future.
British prime cattle prices once again recorded some strong increase last week, continuing in the same vein as the last few weeks, prime cattle prices are 47p higher than the same period last year and 27p higher than the 5-year average.
Industry reports suggest that cattle supply is still well below processor demand, product has been tight over the last few weeks.
Estimated prime cattle slaughter totalled 32,300 head, 2,300 head greater (+8%) compared to the previous week. This was predominantly driven by an increased heifer throughput, which accounted for 45% of the rise alone.
In July Imports totalled 23,400 tonnes, down 12% on the year. Imports are still running below the five-year average, likely due to continuing lower demand as foodservice remains restricted.
With fewer imports, demand higher and product being tight prices look set to remain firm and rising.
The Food and Agriculture Organisation is forecasting a contraction of 4% in world exports in 2020 due to coronavirus, with faltering import demand – the sharpest year-on-year decline in three decades.
Widespread disruption caused by the pandemic has hit trade, although, apart from some initial short-term challenges, dairy markets have been relatively resilient, overall. However, across the globe, the FAO is expecting a widespread economic slowdown. Lower petroleum prices will have a significant impact on oil-rich countries and their ability to afford imported dairy products. Exchange rate risk and general trade disruption remain a concern and the uncertainty are likely to make the whole supply chain more risk adverse.
The usual difference between wholesale and retail prices has not increased although there has been consumer difficulty in finding organic eggs, and concerns rise over an “organic egg shortage”, but this seems to be down to increase in demand.
One of the key long-term trends that we have seen is how customers have shifted the way they consume dairy. While overall dairy consumption continues to increase, consumption per capita is showing a movement away from liquid milk and towards manufactured products like cheese.
Consumption per capita of cheese will reach a natural saturation point at some stage, although there are no signs of that yet. However, with population growth, changes in domestic consumption and further increases in exports, we see a clear rise in the relative value of the solid’s element of milk.
Wholesale markets were relatively stable in July, with either steadiness or small movements reported.
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