We think Thailand will produce 1.96m tonnes of pineapple this year, up 570k tonnes year-on-year, yet still behind its historic average.
This comes as COVID lockdowns and the ongoing container shortages have caused heavy logistical strain around its harvest.
The strengthening Thai Baht vs. the US Dollar has also caused domestic prices to rise, making its produce less enticing than that of other suppliers.

Thai Pineapple Production Hit by Widespread Logistical Issues

Around 2.2m tonnes of this usually comes from Thailand, but this year, it looks as though Thailand will produce 1.96m tonnes.

This is a vast improvement year-on-year, as production in 2020 was hit hard by drought.
However, it remains well behind the historic average as its winter crop, which starts in November and drew to a close just last month, disappointed.
This saw Thailand’s pineapple price push up to 8 THB/kg, up 2 THB/kg month-on-month.

This will be an even harder sell, with the fruit in fairly poor condition after farmers harvested crops early to capitalise on the rising prices.
All eyes are now on Thailand’s summer crop, which is due to commence in May, instead of mid-April; this often brings sweeter produce, due to the increased sun it receives, but producers are facing some unique challenges this year.
Firstly, COVID-19 has strained logistics around harvesting, as key workers from Myanmar and Cambodia are unable to access the country due to the tighter border controls.

This means producers are asking locals to help harvest the crop, but they’re looking for more money, which increases the overall cost of production.
The Thai Baht has strengthened against the US Dollar in recent months too, which only adds to the farmers’ running costs.

This is a pity because, as it stands, growing conditions across Thailand look ideal for pineapple cultivation (warm and sunny).

What Does This Mean for Global Trade?

Thailand exports around 2.2m tonnes of Pineapple Juice Concentrate a year, in a normal crop.

We don’t think offers for Pineapple Juice Concentrate will be too dissimilar to last year, when Thailand suffered even poorer production.
However, there is scope for Thailand’s supply to increase later on in 2021, as two new high-tech plantations are set to open.

We’ll keep an eye on the likelihood of this but, even if it does materialise, it’ll be difficult for Thailand to export, given the ongoing container shortages we’re seeing across the globe.
Shipping out of Costa Rica is less of a problem at present, however, meaning we could see increased supply from there.
Many other producers around the world can currently compete with Thai prices too, meaning the Philippines, Indonesia and Kenya could become larger players this year as well.