Exchange Rates

GBP v USD 1.51

GBP v Euro 1.17

USD v TL 1.80

Sultanas

We have seen prices increase over the last two weeks. There is much speculation relating to the recent frosts in the growing regions and the amount of damage that has been caused. A recent report carried out by agronomists indicates that the frost has damaged some of the vines and this could affect the yields of the new crop. Although it is very early and the vines could have a chance to recover, there is no doubt that this will have some impact later in the year. Reports suggest that 5% of the crop could be damages and that development could be hampered.

We have seen larger quantities traded on the bourse and prices have increase in anticipation of a shorter crop. Any exporter who has a short position will be keen to cover to risk avoiding further price increases. There is still a good quantity of fruit available so overall the market is not short, but sentiment is very bullish on the back of recent news. We can expect to see this trend to continue for a while, but if the development of the crop is good then the market is likely to remain where it is or even ease back a little. In reality it is far too early to make any assessment of the new crop and we will be better placed in 2 months’ time.

Prices have increased TL 150 ($ 80.00) per mt, but it looks like that it will not rise much further than this. Turkey has exported 155,000mt to date which is 9% higher than last year, with the UK being the largest importer at 41,693, which 3700mt up on the same period last year.

Raisins

The USA market has eased back over the last few weeks, but prices still remain relatively high at around $ 1.16 cent per lb FAS. ($ 2560 per mt), although this is way off the much higher prices we have seen over the past few months there is still very little buying interest at these levels. We expect that the US will have a reasonable carry-in and if this year’s crop proves to be a good one, they will be under pressure to reduce prices further.

The Chilean market is proving to be more difficult than expected with supplies shorter than anticipated. Initially we were seeing offers in the region of $ 2650.00 for Jumbo Flame variety but this rose sharply to $ 2850.00 after it became clear the crop was not as good as anticipated , buyers rushed in to cover fuelling the market further and we have seen prices as high as $ 3200.00 per mt. A number of packers have withdrawn until they can fully assess the availability of fruit in the market, it is likely that we will not see further offers until late May to Early June, once they have processes their existing stocks and can ascertain what grades they have to offer.

There is limited availability of Raisins form Turkey and remaining stocks are in the hands of mid merchants and packers who are now looking for large premiums. Turkey has been the most competitive of the main stream suppliers and has sold very good quantities this year. With rumours of the new crop being potentially affected by some frost damage, very early forecast are for a smaller crop this year. If this is the case, growers will not be keen to produce Raisins and as such availability could be very tight going forward. With other origins significantly more expensive than Turkey, we can only expect to see the prices increase further.

Currants

Whilst we believe that there has been a modest fall, in Global consumption of Currants, this season, it is difficult to support this, with exact values, in the absence of official statistics, previously published by the industry. We estimate that exports may have fallen by 5-10%, in total. This point of view is supported by the fact that there remains a small amount of unsold raw material, at origin, in spite of the record low 2012 crop, estimated at less than 20,000mt.

It is still predicted, that the 2013 crop, may bring an increased supply, as vines planted in recent years, become productive. By the end of April, the risk of frost will have passed giving more confidence, in the prospects for new crop development.

With the majority of remaining unsold fruit, now in the hands of The Unions, or private packers, it is unlikely that we will see a significant fall in price, even if it becomes clear, that a larger crop in September is likely. Carry over from the present crop, will be negligible (if anything at all) and should anything remain, sellers will not rush to reduce offer prices, until the new crop is safely dried and stored. Furthermore, we expect that there will be early demand, for new crop Currants, which is likely to support raw material prices, of levels similar to those presently in place, at least until the final quarter of 2013 and possibly beyond.

Stockport food ingredient supplier seeks out new site in Reddish

EHL Ingredients, Broadstone Industrial Estate, Reddish, is looking to buy a new warehouse facility in the area. Following extensive growth in 2012, the company requires between 6,000 sq. ft. and 10,000 sq. ft. to house ingredient blending machines, as well as suitable storage space for packaging materials and dry food ingredients.

The company, which hit its £5m sales target at the end of last year, is planning further growth and expansion during 2013 and the new storage facility will help to achieve this.

It currently offers around 300 food ingredients and boasts a 200-strong organic range as well as over 50 custom blends. EHL Ingredients’ products are sold into the food manufacturing sector and used in end products, such as breads and bakery items, ready meals, healthy snacks and soups and sauces. They are also sold to speciality food shops, delis and organic retailers across the UK.

Sales Director, Tasneem Backhouse, says: “We are in the process of reviewing facilities on the Broadstone Industrial Estate but we are open to enquiries from warehouses around the Reddish / Stockport area.

“We will use the new site mainly for storage of packing and packaging materials and dry ingredients, such as dried fruits and nuts in larger quantities. We also plan to install a new industrial dry ingredient blender, and machinery for our packed down facility for own label clients.

EHL is also looking for new staff and is currently recruiting for several roles including a New Product Development Manager with more roles to be announced in the next few months.

The company was awarded a grade A BRC certification once again in December last year. This gives EHL’s customers the reassurance of the company’s quality and safety management processes and opens up new growth opportunities for the business.

To find out more about EHL Ingredients, visit www.ehl-ingredients.co.uk, email info@ehl-ingredients.co.uk or call 0161 480 7902.

EHL Ingredients is an importer, blender and packer of food ingredients from around the world. From herbs and spices, to beans and pulses and dried fruit, it supplies over 300 food ingredients to all areas of the food industry, and boasts a 200-strong organic range as well as over 50 custom blends. Now in its 18^th year of trading, it employs 22 staff and its head office is based on Broadstone Industrial Estate, Stockport.

March – April 2013

Almonds:

The latest shipment report for Feb 2013 (v Feb 2012) showed an overall increase of 6.8% for the month at 160m lbs.

It is also interesting to see YTD sales of almonds from California by region and country, in comparison with the same period last year.

Domestic US sales are up by 11%, and exports up by 5% (although down 2% on the year).

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March 2013 Market Report

Sterling has reached six month lows due to negative sentiment on the UK economic growth forecasts and increases in government borrowing. The G20 meet this week which might give some direction, but currently risk is off and the US dollar and Euro seem to benefit. The US still relies on democrat and republican agreement over fiscal issues whereas the Eurozone appears to be on track according to Mario Draghi, including the Spanish economic plans.

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EHL Ingredients has launched a brand new, natural ingredient to the UK food sector – Mexican Oregano.

This premium Mexican variety features the dried leaves of the perennial herb Lippia graveolens and was launched in response to customer demand for an authentic Mexican Oregano herb.

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Ingredient supplier recruits new Assistant Technical Manager

Food ingredient supplier, EHL Ingredients, has welcomed a new recruit into its growing team. Debadutta Jayaprakash,age 27, joins as Assistant Technical Manager and will oversee all technical functions for EHL, including managing the quality management system and supplier documentation, HACCP review, technical customer support and will be responsible for all technical due diligence.

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