The cranberry market is recovering from the record low levels that were reached in the 2013 crop.Â At present all suppliers are pushing pricing up and weâ€™re seeing some resistance from buyers.
The crop is down ~10% but that is negligible as the industry is still sitting on a large carryover.
The critical issue for the cranberry issue is the reduction in demand for concentrate, SDCs and cranberry concentrate are produced in tandem and although demand for SDCs is growing, this is not the case for concentrate.Â The percentageÂ of concentrate used in juices has been eroded over the years which has reduced the volume required. Furthermore with an ever expanding variety of juices on the market, cranberry is less tempting than it once was.
Ultimately there is an oversupply of fruit into this market which has led to an all- time low price for growers.Â We may see a capitulation this season with many growers going out of business.Â This could lead to a real shift in the market, with pricing going up due to a supply being naturally regulated, however this will not occur for a good couple of seasons.
Production capacity is the limiting factor in the SDC market.Â All processors are at capacity so this is the rationale for increasing prices.
In the UK/Europe buyers will see increased pricing from origin and higher prices due to significant currency fluctuations.