Insight Focus
- 2023 Thai pineapple production will fall to the lowest level in more than a decade.
- This follows low fertilizer application and poor rainfall.
- Asian and European demand for pineapples remains strong.
Thailand Production Shrinks
Thai farmers reduced their pineapple planting area due to a higher production cost (expensive fertilizer) and a labour shortages in some areas, which have continued from 2022 crop. Some farmers have even switched from planting pineapple to other crops that can provide the farmer with a higher income.
Cassava has been a substitute crop, for example, which requires less chemical fertilizer application. Cassava root prices are also high, providing a better return for farmers.
We initially expected pineapple production to reach 1.7m tonnes. However, farmers applied less fertilizer to save on costs, resulting in a lower yield. As a result, we now expect pineapple production to reach between 1.2 and 1.30m tonnes (-10% yoy) while yield is 3.8 kg/rai (-0.9% yoy).
(Rai is a Thai unit area equivalent to 0.00016 hectare).
Historical Pineapple Production
Harvesting Season
Pineapple harvesting should start imminently. We expect there will be a huge volume harvested during April (before Thai Holiday -Songkran) till June, at around 0.6 m tonnes (38% of Thailand’s production). A further 24% of the crop (0.4m tonnes) will be harvested in November and December. There’s still time for the weather to improve the crop if there’s sufficient rainfall through the middle of the year.
Pineapple Quality
Many factors including weather and fertilizer application can impact pineapple quality. When there is not enough rain the pineapple fruit will not be as sweet because the rain dilutes sugar content in it, and nitrate parameters change.
In addition, when farmers apply less fertilizer, the pineapple cannot develop to its maximum size. As a result, pineapple quality reduces.
Pineapple Strong Demand
There is still a strong demand of pineapple (both pineapple juice concentrate and dices, etc.) from Asia and Europe. Pineapple prices in early March 2023 have gone up to THB 7.71/kg, 13% higher this time last year.
Historical Pineapple Price
The Thai crop shortfall could lead to strong pineapple prices for the rest of 2023. This could be an opportunity for the pineapple producers to improve their production, encourage farmers to expand their planting area, and potentially attract future engagement involving Thai pineapple around the world.
