Green Olives prices for finished goods are starting to be presented and option contracts held for quantities are being closed for pricing in the coming days.
Here’s where we are basically for finished goods in Euro Terms:
Queens are up a whopping 12% to 16%....
Manzanillas are up about 5% to 6%...
The price pressures are classically market driven with Supply Shortages evident in the Queens and only energy/production cost pressures showing on the Manzanillas.
For some customer’s we have been suggesting they accept a wider allowable range in the sizing (counts per kilo) to help offset the high rise in Queen prices.
None of this takes into account the US Dollar ($) vs. the Euro (€) rate. We had pegged initial forex price hikes last October that take effect mostly January 1st at 1.42 to 1.44 band. If these rates should deteriorate during the first quarter of the coming year, further forex adjustments could be expected.
Other cost factors that are on the rise include Transportation (Ocean and Drayage) costs.
And then on the US side, costs are rising too from Storage to Pier Passes and User Fees.
End Results are Finished goods are up and new prices will take effect in March at the latest.
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