As the world slows down it is impacting food pricing from all corners.
In China, just a couple of months ago the price of waterchestnuts for the new crop (started in December) experienced a 40 – 50% price increase. Today with the events of global slow down we are seeing pricing come off. Now many of the frozen food factories in China have excess inventories in all vegetables. The Chinese factories are bombarding the importers with request to ship now to help alleviate their inventories and cash flow. Price discounts are offered as incentives to move the product and we suspect more to come.
This phenomenon we also are experiencing in the USA were suppliers are offering lower pricing in frozen corn and other vegetables to move product.
Everybody is impacted. Lower pricing, lower fuel surcharges and softer demand compounds the spiraling effect.
What is happening is nothing more than what we expected (see previous blog about waterchestnut pricing http://www.noon-intl.com/blog/2008/11/14/water-chestnut-shortage/), the question is how much lower will the pricing fall?
