Peaches



This time last year, Greek fruit farmers and canners were at loggerheads over prices, resulting in factory blockades and even threats of violence. This year there are signs that there could be similar problems. Growers are expecting the peach crop to be down 15% at 380,000 tonnes as a result of late ground frosts and unusually wet conditions earlier in the blossom season. The next two weeks will be critical as canners' representatives seek to reach a price deal with farmers. Continuing growth in the fresh market is enabling farmers to divert more of the good quality fruit to the more lucrative sector.

Spain has started production against a forecast of 490,000 tonnes - 10% down on last season. With these lower peach crops, UK traders expect prices to be 5-10% higher but retailers will point to declining demand and push for more promotional funding in order to retain consumer interest.



Corned beef



Forward offers of Brazilian corned beef were sent higher by rumours that Russia is about to approve more than the two current beef supply areas - Rio Grande de Sol and Santa Catarina. Previous outbreaks of foot and mouth in Brazil forced Russia and other users of forequarters and trimmings to switch to other South American countries, particularly Uruguay, hence the stable cattle price for the past few months. This time last year, Brazilian beef cost Reale 55.25 per arroba. Russian relaxation of controls will put pressure on costs with expectations that by September/October the level will exceed Reale 55.00

Further consolidation within the South American Frigorifico industry has taken place with the announcement that the largest Brazilian beef producer Bertin has acquired Cannelonis of Uruguay. UK traders see this as a move to concentrate more on the American market and take some of the pressure off South American processors who are dependent on the European market, particularly the UK.



Salmon



The Red Salmon run in Bristol Bay looks as though it will be above forecast, bringing relief to UK importers who feared a repeat of the 1998 run failure due to low water temperatures. "The fish are coming in fine, although slightly smaller than usual," a Seattle packer said. Raw material costs for Reds are down to 55 cents/lb against last year's 60 cents. It is too early for prices, but 418g will be higher due to a switch by canners to a higher production of the more profitable 213g.

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