July 31, 2022
August 2022 Regional Market Report News
Baby Corn is sourced throughout Southeast Asia, primarily in Thailand. The product is typically sourced twice annually, with a Spring season from April – June and a Fall season from October – December. Recent heavy rains during the Monsoon season, combined with rising labor and processing costs, have all resulted in drastically lower raw material yield from Thailand in the Spring 2022 season. This has caused the price of baby corn to spike, particularly from Thailand. Roland Foods sources this product from Vietnam as well, where the outlook is slightly more favorable. Our Vietnamese partners are able to continue shipping the product during this difficult season to provide coverage until the Fall season in Q4 2022.
Severe drought in growing regions of Italy is resulting in market instability for Arborio Rice. The bulk price has skyrocketed in recent months due to reduced raw material availability. Increased demand following the war in Ukraine and subsequent wheat shortage has exacerbated the problem. We are constantly monitoring the situation and have multiple sources of supply, but due to the nature of Arborio Rice, it is only sourced in Italy and availability is dependent upon local weather conditions.
To learn more about the status of Arborio rice, explore recent news below:
Global Supply Chain and Logistics Updates
U.S. Import Volume: The U.S. is Importing More Than We Ever Have
April 2022 was the third highest import volume month on record for the United States, as the ports of New York, Houston, Savannah, and Charleston all experienced double-digit increases compared to the prior month. 5 out of the top 10 U.S. ports are experiencing 50% increases compared to 2020 for the same period.
Roland Foods has navigated these heightened import volumes by securing dedicated allocation on steamship lines from our source countries, ensuring that our products move from origin to destination without delay each week and every month. We have also secured additional trucking partners in anticipation of heightened traffic and congestion at major ports during Q4.
Fuel Prices: Getting Lower but Still High
Although trending downward over the last 3 weeks, diesel fuel prices remain high, which continues to impact the price of goods and services. While June per barrel prices saw a decrease, we are seeing a 50% increase per barrel since the beginning of 2022.
Truck Driver Shortage: Declining but Still Impactful
In January 2022, for every 1 truck driver in the United States, there were 10 truckloads of freight needing to be moved. That number has decreased over the last four months to around 4 truckloads for every truck driver in the United States. Although we’ve seen an improvement, the truck driver shortage is still at historically high levels.
Roland Foods has increased capacity by increasing our driver headcount by 25% and securing trucks to ensure we have appropriate capacity.