A Message From Our CEO

To our customers,

With summer on the horizon, we are navigating a dynamic global landscape shaped by geopolitical instability, a shock to oil and fuel prices, ongoing tariff uncertainty, and always-evolving crop conditions. While volatility and uncertainty persist, we remain committed to continuously improving our global supply chain to bring stability for our customers.

Crop conditions across key categories remain stable with some variability. We are monitoring the reports of an exceptionally strong El Niño event later this year, which could have significant impacts on global agriculture.

The artichoke harvest outlook is mixed. While current weather and crop conditions are favorable, the potential development of El Niño poses uncertainty. Due to continued investments by artichoke growers, we have secured our expected volumes in anticipation of future instability.

Anchovy fishing in Peru continues to recover after years of challenging conditions. In contrast, anchovy paste sourced from Spain has seen cost increases driven by weaker exchange rates, tighter regulations, and higher labor costs.

Lychee production, often highly volatile, is expected to decline 30–40% compared to 2025 due to warm winter conditions and heavy rains in Vietnam and China that limited flowering. Across all categories, we are maintaining close communication with suppliers to ensure continuity of supply and alignment with customer demand.

From a logistics standpoint, global conditions remain uncertain. Section 122 tariffs, ruled unlawful on May 7, are still in effect during appeal, maintaining a 10% import tax. These tariffs are likely to be replaced by similar measures after their planned expiration on July 24, 2026.

At the same time, escalating Middle East tensions continue to disrupt ocean freight, keeping shipping spot rates high and capacity tight, leading to longer transit times. We continue to monitor these developments, adapt our supply chain planning as needed, and keep customers informed.

Rising oil prices will continue to impact the global economy, as U.S. inflation rose to its highest levels in 4 years. For Roland Foods, higher oil prices are showing up in both transportation costs and product input costs, especially packaging. We are working to offset these costs with supply chain efficiencies as much as possible, but a prolonged duration of high oil prices will impact all aspects of our supply chain.

We are committed to maintaining product availability and transparent communication with our customers as we navigate an evolving global landscape. We greatly appreciate your continued trust and partnership with Roland Foods.

Sincerely,

Keith Dougherty

CEO of Roland Foods