June 01, 2023 | Industry News
June 2023 Regional Market Report News
Crop Updates
Olive Oil
In October 2022, Spain experienced a drastic 50% decrease in olive yield due to extreme drought in its principal cultivation areas. Given that Spain is the primary source of olive oil worldwide, this scarcity triggered a substantial escalation in the global market price for olive oil. The cost of olive oil has now soared to its highest levels in 26 years and is predicted to remain high, as the Mediterranean climate has continued to be severely dry leading up to the impending growing season. However, we are working on vetting alternate sources for olive oil from countries such as Turkey to help mitigate cost and supply risk.
Rice Wine Vinegar
Roland Foods' rice wine vinegar category faced significant supply challenges during the supply chain crisis of the past few years, resulting in intermittent stock outages and reductions to product offerings. After an extensive search, Roland Foods is pleased to announce that we have secured a reliable partner for rice wine vinegar and expect a full recovery of inventory levels in July of this year. This includes both foodservice and retail formats.
Global Supply Chain and Logistics Updates
Import Volumes Approach 2023 Peak
We are entering peak shipping season. Import volumes have been trending upward since February and are projected to peak in July or August. The increase in shipping will be manageable, there is little concern regarding port congestion and available vessel space. Below are the updated import projections from the National Retail Federation which compare the expected monthly container imports for 2023 against the recorded 2022 import data.
Southeast Asian Trade Driving Imports
The increase in imports is mostly attributed to Southeast Asian Trade, from April to May Chinese imports surged. In previous months there was skepticism regarding China’s reopening strategy, however, it appears that China is back on track and retaining its dominant status in global trade. To understand how container shipping will progress in the foreseeable future we will closely monitor Chinese exports.
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