Insights on Pineapple Processing from ABC Fruits visit to Thailand
The ABC Fruits team visited pineapple processors in Thailand from December 16-20, 2024, to gain deeper insights into the region’s pineapple industry.
In this blog, we explore the effects of El Niño weather patterns on pineapple production, as well as the availability of fruits for processing and the current high-demand product, Pineapple JC 60bx.
Overview
Thailand is facing significant challenges due to the combined effects of global warming and the El Niño phenomenon. These environmental factors have led to a drastic reduction in water levels within reservoirs nationwide, which are now averaging 20% lower than in typical years. This substantial decrease has created critical water shortages that are severely impacting the agricultural sector
Decline in Pineapple Production
The pineapple industry has been grappling with a significant decline in production, particularly in Thailand, a major global supplier.
2023 Output: Thailand produced approximately 1 million tonnes of pineapples in 2023, marking the lowest output in over a decade.
2024: Total Production fell further, with estimates ranging between 600,000 and 700,000 tonnes. This represents a dramatic drop from the 2 million tonnes produced in previous years.
Outlook for 2025: Efforts are underway to replant crops, and with higher prices expected, production may rise to between 800,000 and 1 million tonnes by 2025.
Pineapple Seasons in Thailand
Thailand typically experiences two pineapple growing seasons:
- Summer Season: From April to August.
- Winter Season: From October to February.
In favorable conditions, the pineapple growing period can extend up to 10 months a year, with a short pause of no more than 2 months.
Challenges With 2024 Summer Crop
The 2024 summer crop, which began after Songkran in mid-April, has faced significant challenges:
Extreme Weather: Ongoing dry conditions and high temperatures result in small and burnt/damaged fruit.
Estimated fruit arrivals range from 150 to 400 tonnes per day, depending on the supplier, and it takes approximately 2-4 working days to process a single load of pineapple JC 60bx.
Tight Market Conditions: Due to the limited availability of quality fruit, the market remains tight and prices are exceptionally high (approximately THB 14 per kilogram).
High Price Due to Limited Supply
Fruit prices have risen sharply, with some reaching up to THB 14 per kilogram. Larger companies are paying even higher prices to secure available supplies, further driving the price increase.
Producers were initially aiming for prices around USD 3,500 per tonne (60 brix, FOB Bangkok), but due to the ongoing shortage, the prices for prompt shipment has risen to > USD 4,000 per tonne (60 brix, FOB Bangkok).
However, even with the high prices, securing volumes has proven to be highly challenging.
Supply Chain and Shipment Delays
Significant shipment delays have been reported, with due to unavailability only 25% of contracted quantities being shipped during the first four months of the year.
While demand has recently slowed, certain buyers are pushing for early deliveries, which producers are unable to fulfil due to the ongoing short supply.
Ongoing Shortage and Market Strain
The supply shortage has persisted since January 2024, and while there were hopes that the new season would ease the situation, the ongoing challenging weather conditions have made it difficult to recover quickly.
Conclusion
Given the severe weather challenges and the ongoing supply constraints, it’s clear that the pineapple industry in Thailand is facing a tough period. Prices are high, and quantity is limited. As we move forward, careful planning and flexibility will be essential to handle the market pressures and secure a steady supply of pineapples.
Pineapple Juice Concentrate Manufacturer and Supplier in India
ABC Fruits is a well-established manufacturer and supplier of Pineapple Juice Concentrate in India, known for its commitment to producing high-quality products recognized on a global scale. The company caters to both domestic and international markets, ensuring its premium pineapple juice concentrate meets strict global standards. This product is widely utilized as a key ingredient in beverages and various food formulations.
