The pineapple production in Thailand is estimated to reach 1.20-1.25m tonnes, the lowest in two decades. Thailand is one of the largest producers and exporters of pineapple and pineapple juice.
The Thai pineapple production plummeted on the back of delayed plantations in April due to dry weather prevailing in the country (primarily east Thailand). As a result, the delayed planting hindered the arrival of the pineapple harvest in Thailand, which is now expected in mid-October. Mintec prices for Thai pineapple earmarked for processing have increased by 42% between April and September 2019. Following a delayed arrival of pineapples, the factories processing pineapple juice are expected to have a more extended shutdown than usual, and they will only re-start in mid to late-October. As a result, Mintec pineapple juice prices have increased 15% between April and September 2019.
Thai pineapple juice prices are forecast to strengthen further as the raw it could be very expensive at start of the peak season due to competition from factories and increasing demand from the European market. Besides, the Thai juice industry lost money during the summer crop, and the growers were determined to make profits in the winter crop, which is likely to add upward pressure on prices. The intense competition from the Philippines, Indonesia and Costa Rica may restrict the price increase; however, the current delayed supplies are likely to outweigh the bearish driving factor.