Harvest: All Year
The market has remained weak for some time now with most realistic buyers and producers realising prices are at rock bottom. There is hardly another dollar to be squeezed out of the supply chain with all involved already trimming margins to fight for new business. It is no doubt a buyers market at the moment and with supplies looking still in abundance there is little sign that this will change in the near future.
Whilst pleasing for some (end-users in particular) this situation does not encourage a sustainable future for supplies, as many farmers are likely to get discouraged over time to continue to produce with lower and lower returns. When this happens it could start to change the supply and demand balance and with it prices.
August and September are traditionally a good time to buy as supplies start to pick up at the beginning of the dry season. This year, with prices already at the bottom, we are not seeing the same benefits but buyers should be confident to keep healthy inventories at these price levels as the product only gets better with age and prices are unlikely to reduce further.
The general market aside there are a number of encouraging sustainability projects in place across Sulawesi, which aim to bring stability to particular areas of the market with an emphasis on supporting local communities. A number of multinationals and brand owners have endorsed this and Van Aroma are also heavily involved. These projects show a real value to everyone involved, ensuring the future is secure. This sort of transparent relationship among brand owners (or end-users), the processors, the collectors, the farmers and the local communities brings confidence to everyone in what historically can be a volatile market.
Market prices USD 36.00 - USD 50.00 /kilo