Noon International: Food Trading Import Export

Just after posting about the problems in Mexico with Broccoli and Cauliflower we are now trying to asses the damage in China after typhoon Krosa.  Krosa which hit Taiwan last week and then veered northwest toward China hit the province of Zhejiang.  One of the areas that was hit was Linhai, which is one of the largest if not the largest growing area for broccoli in China.  Initial inspection of the area indicates that their was significant damage.  The key now is in replanting.  If they can replant a good portion of the damage it will help to alleviate the situation.  As of today we are expecting price increases in the 5 – 10% range.  It is not only the Zhejiang area that was affected but also Shandong province was impacted by inclement weather.  In Shandong they are predicting production will only be about 2/3’s of last years harvest.  The other growing area Fujian appears to have been spared up to this point in time.  Overall it appears that China’s cost of broccoli and cauliflower will increase a minimum of 5 – 10%.  One other factor  to consider is that if Mexico falls off and the USA customers seek to fill the void from China it will put more upward pressure on pricing from China.  Incidentally, New Zealand also appears to be somewhat short of broccoli and cauliflower as they are looking at China as a source to fill the void.  The pressure is on China at the moment not only from the production side but also from the food safety issues it currently faces.

Will Mother Nature come to the rescue??

Technorati Tags: Noon International, China, Mexico, broccoli, cauliflower, Krosa

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