Meat Brazilian corned beef producers warn that prices will have to rise to claw back losses from the weakening dollar. As they trade beef in US dollars, the continuing strength of the local currency, the Brazilian real, is undermining their returns. Two months ago, frigorificos could get R$2.15 for one US dollar. Today they get R$2.00 - a drop of 7%. "US dollar prices will have to rise again to compensate for the exchange drop," said a Sao Paulo-based source. UK importers should expect to pay more for hot and cold processed meat products from Brazil, he added. Heavy rain is persisting in Brazil's cattle-rearing regions, allowing farmers to leave cattle in the field to gain weight at no extra cost. This, alongside the long-term trend of farmers switching from livestock into crops, is continuing to keep prices high and product short. Brazil remains the UK's biggest supplier of corned beef, with 80% of the retail and food service markets. Argentina and Uruguay both have a 9% market share. Fish Red salmon sales have slowed as consumers react to a retail price increase pushed through at the end of 2006. First quarter sales normally fall off, but in spite of on-going promotional activity, including bogof, retailers describe consumer interest as disappointing. It appears that shoppers are also confused by the wide range of product pricing, which sees 215g tins of red salmon on promotion at the price of 99p, compared with the 'normal' ticket of £2.35. UK importers will be using these facts, combined with the good pack of Alaskan red salmon that is forecast this season, as a sign that prices should be lower. They will continue to benefit from the weak dollar, which is lowering importers' sterling costs. There should also be promotional activity on skinless and boneless red salmon, after several Alaskan plants began processing it, hoping to attract a younger customer base than exists for the skin and bone product. Fruit Spain's strawberry pack was delayed by heavy rain, and will be shorter than usual as a result. But the shortfall will be made up by Chinese imports, which are showing year-on-year growth in spite of a 20.8% duty. Meanwhile, pineapple supplies are under threat as Thai producers are failing to meet outstanding contracts due to fruit shortages. A source in Manila said: "Farmers are forcing field prices to new highs as world demand for fresh fruit continues unabated."

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