Roland Foods Updates
Ocean freight spot rates from Asia continue to stay at record high levels as import demands remain historically steep. Recently, importers have seen capacity disruptions due to heavy congestion across the entire Trans-Pacific network, as carriers have hit their max-capacity ceiling and can no longer bear the full load.
According to the Freightos Baltic Daily Index, the spot rate for Asia-East Coast has grown 200% from last year and Asia-West Coast by 153%. The dislocation in the market has continued even in the last quarter with both the Asia-East coast rates and Europe to East coast rates increasing over 60%.
Roland Foods, like so many other companies, is experiencing a rapidly changing environment. While we expect to face challenges due to shifts in freight rates, capacity, and equipment availability, we are working hard to soften the impact of the current market conditions. We have a deep network of ocean freight carriers and freight forwarders who work with us to avoid significant spot rates and allow us to identify market opportunities.
Together, we are committed to make every effort to ensure our partners experience minimal effect. We appreciate your patience and understanding as we work through future uncertainties. To discuss potentially affected items, please contact your Account Manager.
Major Weather Conditions
Regional Market Report News
Crops affected – Artichoke
This past year, Peru has experienced several cost increases due to:
- New labor laws that went into effect on January 1, 2021, which drove product labor costs up 30%
- Implementation of Covid-19 safety precautions in manufacturing facilities
- Global inflationary pressures on commodities that have affected cost of raw inputs and packaging materials
Crops affected – Hearts of Palm
Ecuador, which produces 2/3 of the world’s supply of canned hearts of palm, is seeing significant raw material shortages for cultivated hearts of palm due to:
- A long and unusual drought that occurred at the end of 2021, which reduced the crop by ~30%
- Pricing pressures that have forced many farmers to shift to cultivating more profitable crops, which reduced the overall cultivation area by an estimated 15%
Both factors, coupled with cost increases on global packaging commodities, are causing a significant cost increase in cultivated hearts of palm.
Crops affected – Lychee
The 2021 lychee harvest was abnormally low due to cooler weather in the primary growing regions of China. Harvested during a very short 3–4-week window, the delicate fruit cannot be held in ambient temperatures for long periods of time due to a risk of discoloration and off flavors. Therefore, the fruit either needs to be packed immediately after harvest or sold to the fresh market. The unseasonal climate has resulted in market price elevation of 15-20%.
Crops affected – Pesto
Pesto products are made with a high percentage of sunflower and olive oil, both of which have been affected by cost increases. Sunflower oil costs are driven by the rising price of sunflower seeds, caused by cold weather in growing regions. The increase in olive oil is due to an increased international demand, which has exceeded this year’s aggregated production. These costs, in turn, have caused the cost of the finished goods to increase by 10-15%.
Quinoa was a principal component in the diet of the ancient Incas over 5,000 years ago and has since become a staple in modern kitchens around the world due to its nutritional benefits and versatility in cooking. Roland Foods offers a large selection of pre-washed quinoa varieties such as white, red, black, and tri-color.
- White Quinoa: most common; light texture and cooks up fluffy
- Red Quinoa: richer taste and chewier texture
- Black Quinoa: slightly sweeter
- Tri-Color Quinoa: combination of all three
Try quinoa toasted, popped, boiled in broth for added flavor, and in both sweet and savory dishes.
Peru continues to be the largest producer of quinoa in the world, contributing to 43% of the US’s quinoa imports. The 2021 Peruvian crop for red and black quinoa has been low, resulting in price increases, but white quinoa prices have maintained more stable. Other parts of the world are also now growing quinoa, such as the US and Canada. The 2021 Canadian quinoa crop is progressing well and there are no anticipated harvest issues.
News at Roland Foods
Roland Foods’ digital product catalog has just undergone a redesign. We wanted to provide our partners an easier and more engaging way to find the Roland Foods products that perfectly suit their needs. Click below to explore our redesigned catalog and be sure to bookmark its new link.
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