Passion fruit production in Ecuador has been slow during the second half of the year. Total output in 2018 could well be below that of 2017 and production next year is almost guaranteed to be lower again. For this reason, the price of concentrate has climbed. The small August/September crop created strong competition for fruit and raw material prices have been climbing ever since.
On the positive side, the higher returns have encouraged farmers to take care of their plantations. Current growing conditions are favorable which should result in reasonable production from the forthcoming winter crop in December.
Most buyers are covered for the rest of the year and many have fixed contracts into the first quarter of 2019. Those buyers with open positions are expected to start to secure volumes for next year soon. Producers in Ecuador are currently offering supplies for delivery 3-4 months forward.
Production in Peru will also begin in December. At the moment, there are small volumes of fruit being delivered to the fresh market. Current offers out of Peru are a higher against last month price. The forthcoming crop is forecast to be good.
Overall, the supply from Peru in 2019 is expected to be fine and volumes are predicted to be similar to 2018.
The raining season in Vietnam finished weeks ago and the plantations are now in the process of recovering, say local sources.
Fruit is currently changing hands at higher prices, compared with last month. The higher pricing is reportedly due to a surge in demand for fresh fruit following the rainy period. Passion fruit juice concentrate price is higher than last month.
Farmers in Vietnam have reportedly reduced the growth cycle for passion fruit to around 18 months in order to offer better quality fruit to the fresh market.
This is expected to lead to higher quality of processed fruit, but may also lead to higher pricing in future, say producers.
Traders in Europe say they are expecting higher volumes from Vietnam next year and beyond.