August 08, 2023 | Industry News
August 2023 Regional Market Report News
Crop Updates
Chipotle Peppers
Poor weather conditions in Peru related to La Niña conditions, combined with the coming El Niño pattern are impacting the availability of raw materials used in the production of our Chipotle Pepper items. While we currently have access to ample supply to satisfy customer demand, we are working quickly to secure additional sources in case the conditions in Peru worsen. We are staying close to the situation with our suppliers and working diligently to protect supply and quality throughout the year.
Jasmine Rice
The El Niño phenomenon is anticipated to bring drier than usual weather to Southeast Asia in the Fall/Winter of 2023. This prediction is causing some speculation about the potential rise in market prices of Jasmine Rice out of Thailand. Roland Foods is working to protect supply and manage costs proactively with our suppliers to deliver maximum value to our customers if the 2023/2024 harvest is below average.
Arborio Rice
After a dismal harvest in 2022 due to severe drought, the Arborio Rice harvest is predicted to recover strongly in September 2023 after significant rainfall in the early Summer in primary growing regions in Italy. Market prices have begun to fall in anticipation of a bumper crop, and we are working with our suppliers to ensure the best available costs for our customers in an optimistic market.
Global Supply Chain and Logistics Updates
Containerized Imports Expected to Plateau
As anticipated, the summer months of 2023 were on trend with historical shipping cycles and marked the “peak season.” July and August have been the top months in terms of import volumes this year. As we enter the early fall months, we expect to see a small decline in import volumes across September and October, but nothing drastic. Globally, congestion is waning, moving schedule reliability in a positive direction.
Despite inflation, geopolitical tension, and ongoing supply chain disruptions, import volumes are ahead of pre-pandemic times. Consumers are spending at a healthy pace, and we expect positive GDP growth through Q3.
An Update on the Panama Canal
A return to normal climate is on the horizon in Panama as heavy rainfall has provided much-needed relief to the area. The planned restriction to lower draft depth has been canceled by The Panama Canal Authority. While this will alleviate potential vessel congestion, the Authority will remain cautious in limiting vessel passages to some degree. At Roland Foods, we have contingency plans in place to avoid shipping through the canal if the problems persist or worsen.
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