We are happy to announce our partnership with Hylea 1884. In October 2018 we have visited Hylea in the heart of the amazon region in Bolivia. They are currently building a state of the art facility, which is expected to start production in March 2019. This new facility will generate a huge social and economic impact in the region, where the brazilnut industry is the most important source of income.
Hylea was founded by the Hecker family, Swiss descendants , who are living in the area of Riberalta, Bolivia. The Hecker family has been working with Brazilnuts since 1919. They own 25.000 hectares in the state of Pando, Bolivia. They have decided to build their facility in the small town of Fortaleza to develop this region. Social responsibility and sustainability are extremely important to the Hecker family. Besides the fact that they are providing many jobs, they are also building schools and houses for the families who will be working in the facility. This is one of the main reasons that Rhumveld has decided to join forces, since we admire their efforts to improve the living conditions of the indigenous families in the region and we are proud to be able to contribute and participate.
Demand is picking up again. Many companies have started asking for new crop. We estimate that the production in Bolivia will be around 1.100 – 1.150 containers. In figures this would be less than a normal crop, but not so much as to consider it a bad crop. The most important point to take into consideration for next year is the growth of the Asian Market. According to the statistics, over 400 containers were exported to Asia in 2018, mainly to Korea.
It is also important to mention that the rain season started earlier, which has consequences for the accessibility of certain areas in the amazon. Many roads become impassable. This might result in a delay of the first shipments. Most factories are currently closed for maintenance and will start processing again in January.
Please contact your sales manager if you would like to receive a quotation for current or new crop.
Maca powder is one of the most popular superfoods at the moment. It’s a dietary supplement derived from the processed tuberous root of Lepidum meyenii and well known for its nutritional benefits. The worldwide demand continues to grow, meanwhile the cultivated areas have been decreasing due to low market prices and overstocks have been depleted. This has generated a huge price increase in the past couple of weeks. Now the big question is: Will we reach the peak levels quoted in 2014 one more time?
As you can see in the chart below, in the years 2013-2014 the total sales of maca powder increased 63% because of the growing demand in China. This resulted in scarcity of the product and caused a huge price increase, with prices quoted up to $37,43 /kg in May 2015.
The growing worldwide demand generated an increase of the cultivated areas, growing from 2500 to 10000 hectares. The approximate yield per hectare is about 1 MT of dry maca roots. In the coming years maca became more popular and gained more publicity worldwide.
When China stopped buying in 2016, this resulted in a price reduction. Mainly due to falling prices and oversupply in Peru, maca became more accessible and had been widely used by the Food and Pharmaceutical industry. In 2018 the market reached its lowest level, being quoted at 2,60 FOB. Many farmers stopped their cultivation of maca powder, because of the fast that sales prices were even lower than the cost of production of the raw material. This led to a huge decrease of cultivation areas, mainly in the area of Junin.
As the worldwide demand continues to grow and overstocks are now depleted, exporters expect prices to reach levels quoted in 2013, before China entered the market. We have seen prices rising rapidly in the past couple of weeks and recommend our customers to cover for the next couple of months.
Peruvian maca roots grow in 3 basic color groups: 1) White and yellow roots are made into Yellow Maca powder (60% of the annual harvest), 2) Light pink to dark purple roots are made into Red Maca powder (25% of the annual harvest) and 3) Light gray to dark gray roots are made into Black Maca powder (15% of the annual harvest).
Our standard maca powder is a mix of the 3 phenotypes of Maca (yellow, red and black), but in order to personalize your health, body and fitness goals, we can also offer customized blends according to your requirements. We can also offer gelatinized maca powder.
After the very low prices in 2017 for Siberica pinenut kernels due to a very large crop, we have seen big increases in 2018 for both Pineus Koreansis and Siberica varieties.
During the CCCFNA’s Nuts conference which was held in Zhuhai in August, 2018, the pinenut working group estimated the total yield (in shell) of Pinenut Koraiensis in China around 40,000-50,000mt, Russia 20.000 to 30.000 mt and N. Korea 10.000mt In total, the yield in shell was expected to be 70.000mt to 90.000mt. However, in the later phase, due to drought, the pine cones didn’t grown as large as expected and to make things even worse, the main production area was struck by a serious insect and pest attack, as a consequence pine cones fell off the trees before they matured. Due to these circumstances the real yield of China origin Koreansis is 25.000-30.000mt, 30 to 40% less than estimated.
Unfortunately, Russia and Korea’s yields of Koreansis are not good either. It is estimated that the actual yield in Russia and Korea would be 7.000 to 8.000mt and 4.000 to 5.000mt respectively. So in total the Koreansis crop is not more than 36,000 to 43,000mt (Expected size was 70.000 to 90.000 m/ton). Due to these events, price forecasts were totally inaccurate and prices for the pinus Koraiensis increased sharply especially in the past few months.
The shortage of raw material and poor yields were not the only contributory factors to high prices for pinenuts as the two producing areas for the Siberica pinenuts, Russia and Mongolia, also had their issues. Russia had almost no harvest, while the Mongolian crop was only a little better.
More bad news came from the Mongolian government’s new policy issued at the end of August 2018 banning the harvesting and export of pinenuts for the next three years so as to protect the eco-environment of the pinenuts forests.
Furthermore the outlook for the 2019 crop is not looking good either. In general it is expected that the yield of the 2019 Pinus Koreansis crop will be similar to the 2018 crop (36.000 to 43.000 m/ton).
This combined with the fact that in the coming three years no Siberica crop is expected from Mongolia ( because of the ban on the harvest and export from the government ) as well as predictions that the 2019 Russian crop is not expected to be big (although no firm estimates are available) makes the outlook on prices for 2019 very firm.
Summarizing the above we can conclude that we do not expect the prices of pinenuts to go down and advise you to take cover forward as we believe that this market will make another upward price movement in the months to come.
Tanzania’s president John Magufuli has asked for a 94 percent increase in cashew nuts to protect farmers. With this move, Magufuli decided to buy about 220,000 tonnes of cashew nuts from farmers after private companies refused to buy at such high prices. Tanzanians will consume all the cashew nuts they produce if they can not sell, the head of the country said. Traders argue that this could lead to a global supply shortage. Vietnam and India may be the first to suffer.
Prices of cashew nuts in two major cashew processing and exporting countries, India and Vietnam, will be pushed up by the new Tanzanian policy. And no country harvested cashew nuts at the same time with this country so the risk of supply shortage is greater.
Following the way of raw nut prices, kernel prices are also tending to rise, and orders from Western countries have been higher in recent days. The future of Tanzanian production is uncertain but the decision of the Tanzanian President clearly puts the market under pressure with a likely decrease in supply in the coming months which was quite unexpected.
Beyond the situation in Tanzania which clearly causes an increase in the price, it seems that the demand for cashew kernels is finally making a comeback. Market players also testify that medium-term orders have resumed with kernel importers seeking to cover the first quarter of 2019 or even in some cases for the first half of the year.
A significant rise in raw nut and kernel prices in the coming months? It is more uncertain. There are still around 100,000 MT of raw cashew nuts available in Côte d’Ivoire and around 50,000 MT in other West African countries. In addition, the rainy season was very good in West Africa and we are seeing a good start of flowering which could lead to an early harvest for the third year in a row. In India and Vietnam, the rainy season was very close to normal. If no late weather event happens, the outlook for 2019 production in the Northern Hemisphere will be clearly on the rise.
And let’s not forget that production in West Africa is growing very fast. According to some Ivoirian stakeholders, this year’s production would have exceeded 850,000 MT, more than our forecast which is still 825,000 MT well above the official figures. By 2019, the 900,000 MT mark will probably be exceeded.
Let’s hope for the sector that this month is the beginning of a period of stabilization at slightly higher price levels than in previous months but without giving way to a disproportionate bullish bubble.