Year 2021 and Outlook for 2022

>>Download<< PDF Edition Year 2021 and Outlook for 2022

The total pineapple supply for both processing and fresh consumption for Year 2021 is estimated to be around 1.15 million tons, an overall increase of 17.5% from Year 2020 of 0.98 million tons. Of this quantity, 0.95 – 1.0 million tons will be for canneries. SAICO forecast that the supply for Year 2022 to increase to total 1.4 million tons while 1.1 million tons for processing.

Although the supply is expected to increase in 2021 and 2022, several factors would impact the availability:

   - Price of pineapple fruits that would attract farmers to replant or increase plantation area amidst the increasing costs for fertilizers and chemicals;

  - Absence of rainfall causing the forcing of flowering to delay;

  - Availability of labor for both plantation and canneries, the spreading of Covid-19 raises the concern to continue procurement and production without stoppage as vaccines are not readily available for manufacturing sector;

  - While we have good rainfall and favorable weather in 2021, the climate could adversely change and impact the supply in 2022.

Not only the production cost for plantation is increasing that may result in higher fruit price for the coming winter season, the high iron ore and oil prices would also have ripple impact on production costs for canneries. The inflation would soon hit Thailand and that may result in the increase of minimum wage.

TPC factory will shut down from next week onward and will resume production around mid of October. Meanwhile, SAICO factory will continue production until end of third week July, then will shut down for one month.

July 5, 2021