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Wednesday, 18 January 2017

Lychees from Madagascar cannot fulfil European demand

The European market has exhausted their supply of lychees from Madagascar and the offer can no longer fulfil demand. The Technical and Horticultural Centre in Tamatave (CTHT) says that the containers imported at the end of last week did not fulfil orders from wholesale distribution centres and that “Containers that are expected this weekend are already pre-sold, suggesting a positive end to the season”. These two containers hold 880 and 300 tons of cargo. This situation is a first for Madagascar’s lychee sector and was unexpected. The end of the season is now positive for them compared to other competing producer countries such as South Africa, Mauritius, Reunion and Mozambique. In terms of prices, lychees from Madagascar and South Africa have competitive prices (€2-3/kilo) across the European market. Meanwhile, lychees from Mauritius and Reunion are selling for €6-7 on the French market. These advantageous prices are mainly because Madagascar chooses to export most of their lychees by boat rather than aeroplane. The CTHT says that the fast turnover of cargo at the end of the year and consequently the lack of supply, is thanks to the good quality of the fruits, the extra week of commercialisation due to harvest beginning prematurely and a strong demand still coming in from large retailers.

Source: Fresh Plaza