Tampico does not only offer premium and organic seeds, we do also offer a large variety of refined seeds like:
“We only deal in a few well selected foodstuffs – but for these we are experts!”
EMail: l.laue@tampico.de | Tel.: +49 911 91 96 69-30
The harvest in all major growing areas has been brought in. The information received from our partners allows to give you a comprehensive summary of the 2017/18 crop year.
China is by far the largest buyer in the global market and determines the price level. Due to decreasing profitability, China grows less and less sesame every year, but has to compensate for the ever-increasing consumption by importing larger quantities.
China’s purchasing power has exceeded that of the U.S.A. The role of the agricultural sector is diminishing. Young farm workers are moving to industrial cities. Prices of sesame have been so low during the past years that farmers have started to turn to more profitable crops.
1,390,000,000 Chinese consume 1.15 million tons of sesame per year
(in words: one billion 390 million Chinese buy 1 million one hundred fifty thousand tons of sesame per year )
for comparison: 510 million Europeans consume 0.17 million tons every year
China started the 2017 crop year with carryover stocks of approximately 100,000 mt, harvested approximately 200,000 mt, and will import approximately 850,000 mt.
Where does China procure its goods? In what way will China influence our supply reliability?
Summary:
“We only deal in a few well selected foodstuffs – but for these we are experts!”
EMail: s.ludwig@tampico.de | Tel.: +49 911 91 96 69-19
Where will this journey be taking us?
“It has never been so gloomy…” this is what nearly every Chinese market participant is moaning about at the moment.
“In the past decades there has been no single November that has brought such little demand with it”.
What is the reason for this slow demand from the European Union and the US and that roasting companies in China have nearly abandoned their purchasing activities?
A few weeks ago we went to China and were able to see so many sad faces:
Sad farmers who still have more than half of their current crop of pumpkin kernels on stock. Prices are that low that they are waiting for better days and better prices so that they do not have to sell their products below market value.
Sad wholesale buyers as they had have barely had the chance to sell goods. Fewer sales lead to less financial means in order to create more sales volume.
Sad owners of roasting plants who usually fire up their stinky coal-fired furnaces at the beginning of the new crop and roast like hell because at Chinese New Year 1.4 billion fellow citizens want to nibble pumpkin kernels. During October they were not allowed to run the furnaces in order to enable the Chinese communist party to hold a “clear” party conference in Beijing. As generally known those party conferences may serve as foresight which hardly works with a sky full of smog…
The party conference is over but the furnaces still are not allowed to be run. The government has started tackling environmental pollution. As a result the roasting plants are only allowed to go on line when they switch to gas burners. As for “roasting plants” you have to figure that these are a lot of small backyard sites which are spread all over the Northern part of China. At night, when you cannot see the black smoke, some of them fire their furnaces and save themselves money by not pouring money into a gas cylinder and a burner. This gives you a sense of the financial power of these micro enterprises…
These “lone fighters” need continuous sales, too, in order to generate money for further goods. Failure of sales means failure of the furnace(s), and thus the demand stagnates in this the largest segment of the pumpkin kernel market.
Sad owners of hulling plants / exporters since they have far too few orders on their books and above all they cannot make sense of why foreign buyers are that reserved. The few orders that have been able to be placed so far do not bring in any profit as raw material prices were too high.
Why is it?
As in many cases also this situation is not due to a decisive event. We would always like to have it that way, because we could explain this situation – and sometimes the world – very easily. Yet also the situation of pumpkin kernels is complex.
We do not want to add further rumours to the already existing ones about and from China. Also we cannot clearly identify the actual reasons. We can only try to have a sharp eye on the market situation and to draw the consequences accordingly.
Even if the markets are not low-priced, we were happy to receive good news from China: Our longstanding supplier upgraded their factory in the summer. It was more than an upgrade, because not only has it been upgraded technologically, but also the setting of new standards.
We at Tampico like to deal with highly innovative technology, because we have the opportunity to implement a lot in the production of our partner factories. We were able to convince our longstanding supplier of pumpkin kernels to invest in the latest laser technology with European origin. This is a technology which renders an excellent service.
Let me say it right away, this technology requires higher investment than optical sorting. As a result, our finished product is not the cheapest on the market – but anyone can do cheap …
In South Tyrol, my favourite place (besides the company), a quote on a sign by the roadside says:
“We know the price of many things but not their value!”
What is happening right now?
Yesterday the raw material prices for shine skin in the growing areas in northwest China went up by about US$50. The reason for this is the demand from abroad, especially from the USA which has slightly gathered pace.
It is possible that the higher demand relates to the upcoming bank holidays in the EU, USA and in China.
Chinese New Year takes place in mid of February 2018, which is unusually late. The last possible shipments will be effected in mid January 2018. For these shipments in mid January one has to order at least three weeks in advance – of course at our beloved Christmas time!
As there is not much to happen in the last week before Christmas over here, we will have barely 4 weeks to cover all necessary demand until April. Before mid April there will hardly any containers with pumpkin kernels arrive from China. Chinese New Year lasts two weeks. After Chinese New Year it will also take about 3-4 weeks until every one is at work and everything runs smoothly again. That means that the first shipments will run at the beginning / mid March; consequently, ETA mid April 2018.
Please check your demand for this unusually long period. Especially bear in mind that demand might gain pace again!
If you want to know more about the “value” of our pumpkin kernels, or about the current market development please do not hesitate to contact us.
Helmut U. Stummvoll
“We only deal in a few well selected foodstuffs – but for these we are experts!”
EMail: h.stummvoll@tampico.de | Tel.: +49 911 91 96 69-17
EMail: l.laue@tampico.de | Tel.: +49 911 91 96 69-30
EMail: marco.schneider@tampico.de | Tel.: +49 911 91 96 69-24
Brown Linseed – Russia:
At present, the new crop with Russian origin is already in the market, but on a small scale. The supply of Russian raw material occurs only as single truck shipments, mainly to small/medium-sized cleaning plants in the EU. The large purchasers (oil mills and cleaning plants) in Central Europe have not yet received any delivery of Russian raw material. At present the first transport per ship from Russia is on the way – with a Dutch oil mill as consignee. The first shipload for Belgian and German buyers is currently loaded in Russia – the analyses before shipment are still pending. The whole procedure of loading is carried out very hesitantly and in an extremely slow manner. The European buyers assume that the reason for this lies in the latent pesticide problems (e.g. Haloxy-Fob) in Russia. Meanwhile, the Russian linseed exporters are very cautious as the dispute concerning a refused shipment in Gent which started at the beginning of the year dragged on over months.
Brown Linseed – Kazakhstan:
The acreage in Kazakhstan is on a record level but in view of the crop volumes the Kazakhs themselves are really skeptical. Our partner himself was in the origin and visited his farmers. It became obvious that parts of the crop will be harvested very late due to bad weather conditions and it differs from region to region. Probably most of the crop will not be harvested before the onset of winter. But in the end the hibernation of the linseed crop also automatically means a loss in quality and reduction of the crop yield – in this case it could be in the range of up to 40 %. As a result of the late harvest in Europe there will probably arrive only small quantities before the turn of the year. Sporadic deliveries by truck have already arrived but we may count on a market relief not before spring 2018.
Yellow Linseed – In General:
At present, yellow linseed has been offered on a moderate price level which is due to the favorable crop quantities in Eastern Europe. The pan-European demand and the acreage in Eastern Europe have been furthermore increased during the last few years. Especially in Moldova and Kazakhstan the acreage and the crop volume have been considerably augmented in previous years. Goods of Moldovan origin have meanwhile been nearly sold out and Kazakh raw material may be expected on a larger scale not before spring. Market participants expect an upcoming turnaround of the price development concerning yellow linseed. We recommend benefiting from the current price level.
Do not hestiate to ask for an individal offer!
“We only deal in a few well selected foodstuffs – but for these we are experts!”
EMail: c.dingfelder@tampico.de | Tel.: +49 911 91 96 69-27
After the news from the United States which came in right before the Anuga fair, a lot of sellers from Eastern Europe have quit the market for walnuts for the moment. One reason is that the price policy and the information coming from Californian exporters are not longer comprehensible. Expected yield losses may be significantly reduced as soon as the later growing and high volume varieties (like Chandler) will have been harvested. A lot of market participants – like importers of US walnuts – criticize the incoming offers from American suppliers which lead to an additional caused shortage of goods.
The incoming raw material to the producers in Eastern Europe is still rather dragging. Good weather conditions in Eastern Europe are still leading farmers to carry out last work on the fields. Cracking the walnuts is effected rather when there are bad weather conditions or when there is a short-term demand for money (like before bank holidays). The current price indications from the States have also been discomforting the Eastern European raw material markets and have, therefore, caused significantly rising prices of about 10-15 % just within a few days.
In order to avoid a further overheated market situation a lot of Eastern European producers were not willing to indicate intermediately quantities or prices. Field works in Eastern Europe will be over then and therefore the raw material situation is expected to improve then. Furthermore, the rural population is assumed to gain additional income due to the upcoming Christmas Days.
Looking at the offers from the US, market participants assume the market situation to relax within the coming weeks. The supply of the customers with goods will again be more focused on than the tactical positioning on the market. Further development remains to be seen.
We returned to the market. We will be glad to provide you with individual offers and we will keep you up to date!
“We only deal in a few well selected foodstuffs – but for these we are experts!”
EMail: c.dingfelder@tampico.de | Tel.: +49 911 91 96 69-27
EMail: marco.schneider@tampico.de | Tel.: +49 911 91 96 69-24
India
Market observers assume an increase of the crop volume by 3 %, so roughly 34,000 MT inshell could be yielded. However, according to USDA the rainfalls in July/August might have influenced the quality of the new crop negatively. The domestic demand is expected to rise by 15 % which consequently means a need of 49,000 MT inshell. India’s export numbers continue to drop drastically. Scarcely 5,000 MT are listed in the official export statistics. The import of walnut kernels are estimated at approx. 26,000 MT in 2017/2018. The exporters from the US profit here, but also Chilean producers could win market share in India.
France
In the past the crop volumes in France have remained stable at a level of about 40,000 MT inshell. The frost-affected losses (up to 50 %) in the south-western acreages could be compensated by the good development in the south-eastern parts of France. Therefore France continues to be the most significant producer within the EU. Roughly 60 % of the crop is exported inshell; a rising trend. Due to high labour and processing costs, the French exporters started to do the processing (shelling, cleaning) in Eastern Europe years ago. The domestic consumption and thus the import quantity of Walnut kernels are rising also in France.
China
In season 2017 frost and drought caused significant losses and consequently a decline of crop volume by 5 % compared to last year’s level (1.0 million MT walnuts inshell). Estimates suggest an improved quality – the caliber of inshell goods is larger and also the kernels are very prominent. Meanwhile the extension of the growing area has slowed down, but one expects an increase in crop volumes nonetheless. The basis for this should be the improvements in cultivation (e.g. watering) and the increasing crop volume of young plantations. The generation-based decline of available workforce in agriculture represents a huge challenge for the Chinese main acreage.
Chile
Since 2003 Chile’s walnut acreages have increased by 10 % each year. For the upcoming 10 years, it is expected that the cultivation areas will continue to expand above all in the south Chilean regions. The better earning opportunities motivate more and more producers to the change. Tremendous rainfall in mid April 2016 caused heavy losses. The current crop profits from extraordinary weather conditions and thus, about 95,000 MT could be harvested. For the season a crop volume of more than 105,000 MT is assumed. Sufficient rainfall, advantageous weather conditions and further plantations going into production are the basis for this assumption. The further development remains to be seen.
USA (California)
In the season 2016/2017 the estimated crop volume was more than 670,000 MT (inshell). So far the damage through the persistent drought with heat records in the USA have been estimated to be approx. 5 % which would mean a reduction of the harvest yield of more than 30,000 MT walnuts. But this damage varies significantly from region to region. After the beginning of the harvest they found out that the damage was even higher than estimated at 10 to 15 % – exact data will be expected soon.
Ukraine
The USDA estimates the crop yield 2017 to be approx. 113,000 MT (inshell) which would be 4 % higher than last year which is due to better climatic conditions compared with the previous season. The acreage is nearly the same with ca. 16,200 hectares.
Moldova
Crop is expected to be at the same level of last years’ crop (about 37,000 MT inshell) or slightly below. Hot summer months affected the quality of the walnut kernels and there are reduced amounts of light qualities available. Sales activities on Eastern European raw material markets are, like in the previous years, dominated by wholesale buyers from Middle East. Availability of raw material is therefore limited and producers are already facing strong competition. Also availability of organic quality is finite. Consequently there is a significant price development.
Romania
Looking at the crop volume of Romania for the season 2017 / 2018, a slightly declining crop amount to about 33,000 MT inshell is expected.
Please do not hesitate to contact us if you have any questions regarding the walnut Situation!
“We only deal in a few well selected foodstuffs – but for these we are experts!”
EMail: c.dingfelder@tampico.de | Tel.: +49 911 91 96 69-27
EMail: marco.schneider@tampico.de | Tel.: +49 911 91 96 69-24
We already informed about your solution for allergens and gluten.
We gave you some information about the benefits of our new production plant in Bulgaria, like:
“We only deal in a few well selected foodstuffs – but for these we are experts!”
EMail: h.stummvoll@tampico.de I Tel.: +49 911 91 96 69-17
EMail: c.dingfelder@tampico.de I Tel.: +49 911 91 96 69-27
EMail: l.laue@tampico.deI Tel.: +49 911 91 96 69-30
You are frequently faced with new & growing requirements in terms of allergens and cross-contaminations?
The global flow of goods and the increasing foodstuff standards, the medias and the behavior of end-consumers
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To create space for a new way of thinking, innovations and a new target definition is our aim.
Only a new production plant is not sufficient to satisfy todays needs.
We achieved your solution by a new & innovative approach in the production process – your solution:
No Allergens
No Cross-Contamination
Not only in the documents and specs, but 100% controlled with a novel Approach!
Get yourself an impression of our revolutional process:
->Your Solution: Allergens and Gluten!<-
“We only deal in a few well selected foodstuffs – but for these we are experts!”
EMail: h.stummvoll@tampico.de I Tel.: +49 911 91 96 69-17
EMail: c.dingfelder@tampico.de I Tel.: +49 911 91 96 69-27
EMail: l.laue@tampico.de I Tel.: +49 911 91 96 69-30
35 years ago our company started business with sesame seed from Mexico and Guatemala and to date we have an excellent reputation as the sesame specialist all over Europe.
Because of the large number of inquiries concerning sesame seed of the new crop we would like to give you an up-to-date interim Report.
Summary: It is too early to make any statements about crop volume or prices,
Our advice: Wait 4 more weeks to tackle sesame seed of the new crop.
As soon as we get reliable quotations, we will reach out to you.
If you need goods at short notice, we will be glad to send you an offer.
“We only deal in a few well selected foodstuffs – but for these we are experts!”
EMail: s.ludwig@tampico.de I Tel.: +49 911 91 96 69-19
EMail: marco.schneider@tampico.de I Tel.: +49 911 91 96 69-24
USA:
After 3 consecutive Californian bumper crops expectations are high also for the season 2017/2018. In season 2016/2017 more than 70 % of the estimated crop volume (670.000 MT Inshell) was exported. The steady demand from Europe, Middle East and Asia generates a good sales situation for the farmers. We expect current data concerning the crop 2017 with the new USDA crop rating/estimation. The Californian farmers are extremely hit by the persistent drought with heat records whereas the further development of the new crop 2017 of walnut kernels and the final impact on it are still not on the horizon.
China:
Up to now China as the world’s most important walnut supplier (approx. 1 million MT inshell) has been dependent on imports due to the high domestic consumption. But market participants estimate that this will noticeably decrease. As to the development of the new crop 2017 we also assume a reduction of the crop volume of about 15 – 30 %. While in the Xinjiang province the crop yield is expected to be on last year’s level, the Shanxi area has to face a decline of 20 to 30 % due to the persistent drought. Furthermore, several cultivation areas are usually affected by rain falls during the harvest which may lead to a negative influence on the quality. The further development remains to be seen. In addition to the factors induced by the crop yield, the price level of the new crop will be considerably influenced by the further development of the domestic consumption and the currency exchange rates.
Ukraine:
USDA’s assessment shows a crop yield of approx. 113,000 MT (inshell) in 2017 which is about 4 % higher than the previous year’s volume. This is due to the more favorable climatic conditions in comparison with the last season. With approx. 16,200 ha of walnut kernels the cultivation area remains nearly the same. In season 2017/2018 the export share should have to be increased by about 8 % up to 73,000 MT (inshell). In season 2016/2017 the most recent export quantities decreased considerably (11 % downwards to 67,500 MT) in comparison to 2015 / 2016. The high domestic consumption is assumed to be above the 40,000 MT level. The EU, the Middle East and south-western Asia remain the most important customer regions.
Moldawa:
The Moldavian producers consider the development of the new crop up to now as positive. So far the new crop has been able to compensate the late frosts in spring and they are again assuming a crop volume on previous year’s level (about 37,000 MT of walnut kernels inshell). Based on experience the limited amount of organic goods should be quickly contracted which is usually accompanied by a rapid price development. Delivery season should be starting around beginning of October.
We are glad to submit an induvidual offer!
“We only deal in a few well selected foodstuffs – but for these we are experts!”
EMail: c.dingfelder@tampico.de | Tel.: +49 911 91 96 69-27
-> Read also our market reports about sunflower kernels and pumpkin kernels! <-
